Doncaster House Prices vs Doncaster Rents since 2006

The Doncaster 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 Doncaster, the market has certainly changed for both buyers and sellers alike (be they Doncaster buy to let landlords, Doncaster first time buyers or Doncaster owner occupiers looking to make the move up the Doncaster property ladder).

Doncaster house values are 1.63% higher than a year ago, and the rents Doncaster tenants have to pay are 1.4% higher than a year ago

When we compare little old Doncaster 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, Doncaster house values are 7.57% higher, yet the rents Doncaster tenants have had to pay for their Doncaster rental property are 18.7% higher

…which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Doncaster tenants are 23.3% 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 Doncaster house values (in red) in the years of 2008 and 2009 … yet as Doncaster property values started to rise after the summer of 2009, see how Doncaster 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 Doncaster property.

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

Whilst, it’s true Doncaster 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 Doncaster buys to let portfolio. More and more I am sitting down with both Doncaster 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 Doncaster 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 the peace of mind – the choice is yours.