1. Rental Prices

After three months of seeing rental prices hit record highs, the most recent data indicates a return to levels last observed in May and June. However, even with this adjustment, the average rent in October remains notably 7% higher than it was at the same time last year.

2. Void Periods

Positive news for investors in the West Midlands, this region is the only one in the country experiencing a reduction in the average length of void periods. Previously at 22 days, it has now decreased to 18 days, signalling a more efficient turnover between tenancies.

3. Mortgage Rates

Recent trends show slight reductions of 0.1% and 0.2% in interest rates, with buy-to-let rates starting from around four and a half percent. Banks appear to be working towards improving affordability, with stress testing slightly decreasing to improve calculations. It's worth noting that with the introduction of lower rates, some lenders are gradually implementing fees of around 2 to 3 percent of the loan amount.

In short, the West Midlands housing market is adjusting and there are positive signs for investors. Staying informed about these changes will be crucial for making informed decisions in this ever changing property market. 

If you have any questions, feel free to reach out to our Head of Lettings Development, Tristan Lee. We'll be back next month with another update!