Demand, Pricing & Investment Potential
The rental market in West Lancashire has experienced notable changes in recent years, reflecting broader trends in the UK’s housing sector. This article delves into the current demand, pricing, and investment potential in the region, offering insights for landlords and investors.
Rising Rental Demand
West Lancashire has seen a significant uptick in rental demand. Factors such as increased mortgage rates have made homeownership less accessible, leading more individuals to seek rental accommodations. This heightened demand has resulted in properties being let more quickly, with many tenants competing for limited availability.
Escalating Rental Prices
Corresponding with the surge in demand, rental prices in West Lancashire have risen substantially. As of January 2025, the average monthly rent reached £711, marking an 11.5% increase from £638 in January 2024. This rise outpaces the North West region’s average rent increase of 9.7% over the same period.
Property Types and Rental Yields
The composition of rental properties in West Lancashire is diverse:
- Three-bedroom houses: Comprise 52.8% of the rental market, with an average rent of £662 per month.
- Two-bedroom properties: Account for 28.3% of rentals, averaging £632 per month.
- Four or more bedrooms: Make up 11.3% of the market, with rents averaging £983 per month.
Given the average house price of £232,000 in December 2024, investors can anticipate rental yields ranging from 3% to 5%, depending on the property type and location.
Legislative Developments Impacting Landlords
The Renters’ Rights Bill, expected to become law by autumn 2025, introduces several measures affecting landlords:
- Ban on no-fault evictions: Landlords will need valid reasons to terminate tenancies.
- Rent increase limitations: Increases will be restricted to once per year.
- Prohibition of rental bidding wars: Preventing competitive bidding among prospective tenants.
Additionally, landlords must address emergency maintenance issues, such as mould, within 24 hours under ‘Awaab’s Law’. These changes aim to enhance tenant protections but may also influence landlord strategies and the overall rental supply.
Investment Potential in West Lancashire
Despite regulatory shifts, West Lancashire presents promising investment opportunities:
- Strong rental demand: The consistent need for rental properties ensures steady occupancy rates.
- Competitive property prices: With average house prices lower than the national average, entry costs for investors are relatively affordable.
- Attractive rental yields: The region offers yields that are competitive with other parts of the UK, making it appealing for buy-to-let investors.
Investors should conduct thorough due diligence, considering both market conditions and upcoming legislative changes, to make informed decisions in this evolving landscape.