The rents paid by Rotherham tenants are now standing at £999 per calendar month (pcm), a rise of 1.55% year on year and 0.15% lower month on month.

This is an attention grabbing figure but it actually masks stark differences in the various parts of the Rotherham rental market. It’s an average figure, after all!

Demand in Rotherham for high quality family homes with two or three bedrooms in good school catchment areas remains really robust due to tenants wanting access to the schools. Places with good transport links have also made certain areas popular. However, we have noticed a drop in demand (and thus rents achieved) for property where the landlord hasn’t kept the property fresh in terms of decoration, carpets, replacement windows and poor heating.

So, what does all this mean for Rotherham landlords?

With the new tax rules for landlords, many believed that the number of rental properties would narrow throughout 2017 as landlords sold up their buy-to-let properties and looked to invest their money elsewhere, but evidently this hasn’t happened (yet). At the moment landlords seem to see property as a safer investment than moving money elsewhere (like the stock market). Demand remained strong in 2017 for Rotherham private rental properties, meaning the rents being achieved were at a decent level for landlords.

Mortgage rates remain at a good level – we’ve actually seen a popular high street bank offering a 5-year fixed rate for buy-to-let landlords with a 40% deposit/equity for 2.17%. Many will remember when mortgage rates were at 15% – this is comparatively cheap money!

Property values in Rotherham, specifically at the lower of the market (where buy-to-let landlords tend to buy their rental properties) have risen in the last 12 months. Flats/apartments have risen in value by 3.89%, whilst terraced properties have risen by 1.70%.

As a result, the yields the landlords are achieving remain squeezed but most landlords feel assured that as capital growth remains at a realistic figure and long-term rents are on the rise, the overall corresponding annual return on investment has stabilised and is now starting to grow.

With additional people seeing renting as a long-term option, even with the challenges of the new tax regime, Rotherham landlords, with the support of a good advice and opinion, should continue to see renting as a good investment vehicle.