We have seen the rental market in Taunton come alive in recent years! With the extension of the works at Hinkley Point as well as efforts from the Council to boost economic growth, Taunton and its surrounding areas alike has become an increasingly popular destination for renters. However, landlords and tenants are still navigating numerous changes brought on by economic trends, changes in legislation and local housing dynamics. This blog will address the ‘Hot Topics’ that are forming Taunton’s Lettings Market and its resulting impact on landlords.
1. Demand and Supply
Our experience has highlighted a typical high demand and low supply issue in Taunton with its economy, community, good schools and strong transport links attracting all dynamics of renters from young professionals to retirees. The low supply has resulted in fierce competition and thus increased rental prices, making it harder for applicants to secure tenancies.
Landlords with properties in Taunton and particularly in its desirable areas such as Trull, Galmington or Bishops Hull can benefit from the high demand and premium rental yields. Investment in property in this area is still a very lucrative entity.
2. The Renters' Reform Bill
Along with the rest of England, the Renters’ Reform Bill is cause for concern as it is set to rebalance the rights of tenants and drive-up rental standards. Proposed action such as the abolition of Section 21 evictions is also something for landlords to prepare for.
It is essential landlords align their practises with the drafted reforms and for ease we recommend use of a letting agent to help ensure compliance.
3. Energy Efficiency Standards
Energy performance certificates have been a hot topic for some time, particularly in the Taunton and Somerset area where there are numerous rental properties which are older and typically less energy efficient. Currently properties only need to achieve an EPC rating of E or above to be ‘rentable’, the government are looking to push this to a C by 2028.
Its important landlords take some time to consider their options, looking at this in advance will mean the cost can be spread over the longer term. Improvements in this area can be expensive, particularly in the case of period properties in places like Trull or Bishops Hull, so it is worth investigating available grants or support programs which are offered to help with the cost of insulation, and modernised heating systems.
4. Family Rental Demand Increase
The highly improved reputation of secondary schools such as Heathfield and The Castle School has had a major impact on demand for families looking for 3- or 4-bedroom houses.
Landlords should, where possible, try to tailor their property to meet this demand by ensuring a secure garden, convenient parking location and modern appliances.
5. Emerging Build-to-Rent Developments
Properties built specifically for renters are gaining traction across England, and our county town is no exception to this with new developments offering popular modern amenities. The recent development on the Riverside in Taunton’s Town Centre boasts good transport links and attracts those looking for convenience and quality.
This can pose threat to traditional landlords who could face competition from Buy to Rent Schemes, they should consider investing in upgrades or modernisations to ensure their offering remains competitive.
6. HMOs and Student Accommodation
Taunton is not primarily a student town, however institutions such as Somerset College or Musgrove Park Hospital, bring in a steady demand for students and people in training, looking for affordable student accommodation. Houses in Multiple Occupation (HMOs) have been on the rise in this area to meet this growing market.
If you are a landlord considering a HMO, ensure you are up to date with regulations and focus on offering well-kept and fully furnished houses inclusive of bills.
Conclusion
The Taunton rental market is evolving quickly in line with its family appeal, rural charm and vast growing professional community. Landlords should ensure they keep up to date with legislative changes and consider upgrades to the property where possible to adjust to modern preferences. Landlord or tenant, it is clear that the Taunton rental market offers ample opportunity for all!
Related Posts
