Yeovil House Prices vs Yeovil Rents since 2006

The Yeovil housing market is a fascinating beast and has been particularly interesting since the Credit Crunch of 2008/9 with the subsequent property market crash. There is currently some talk of a ‘property bubble’ nationally as Brexit seems to be the ‘go-to’ excuse for every issue in the Country. Upon saying that, looking at both what we do as an agent, and chatting with my fellow property professionals in Yeovil, the market has certainly changed for both buyers and sellers alike (be they Yeovil buy to let landlords, Yeovil first time buyers or Yeovil owner occupiers looking to make the move up the Yeovil property ladder).

Yeovil House Values are 7.02% higher than a year ago, and the rents Yeovil tenants have to pay are 1.9% higher than a year ago

When we compare little old Yeovil to the national picture, national property values have risen by 0.4% compared to last month and risen by 3.0% compared to a year ago, and this will surprise you even more, as nationally, property values are 19.8% higher than January 2015 (compared to 11.4% higher in the EU in the same time frame).

However, if we look further back…

Since 2006, Yeovil House Values are 29.2% higher, yet the rents Yeovil tenants have had to pay for their Yeovil rental property are 22.5% higher

…which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Yeovil tenants are 19.5% better off in ‘real spending power terms’.

Looking at the graph, the rental changes have been much gentler than the roller coaster ride of property values. I particularly want to bring to your attention the dip in Yeovil house values (in red) in the years of 2008 and 2009 … yet as Yeovil property values started to rise after the summer of 2009, see how Yeovil rents dipped 6/12 months later (the yellow bars)…. Fascinating!

So, we have a win for tenants and a win for the homeowners, as they are also happy due to the increase in the value of their Yeovil property.

However, maybe an even more interesting point is for the long-term Yeovil buy to let landlords. The performance of Yeovil rental income vs Yeovil house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).

Whilst, it’s true Yeovil landlords have benefited from decent capital growth over the last decade –with the new tax rules for landlords – now more than ever, it’s so important to maximise one’s yields to ensure the long-term health of your Yeovil buy to let portfolio. More and more, I am sitting down with both Yeovil landlords of mine and landlords of other agents who might not be trained in these skills – to carry out an MOT style check on their Yeovil portfolio, to ensure your investment will meet your future needs of capital growth and income. If you don’t want to miss out on such a MOT check up, drop me a line – what have you got to lose? 30 minutes of time against peace of mind – the choice is yours.

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