We have compiled a data report of information from Dataloft regarding our location of Bournemouth in terms of price increases and rental incomes over the past five years. As can be seen prior to the tenant fee ban legislation that commenced in June 2019 last year.
The increase in rent was around 2% for 2017 and 2018 and the first half of 2019. Since then it has dropped to 1% up until Christmas than to less than 0.5% for the first half of 2020. We believe rents will stay fairly static for the remainder of the year. Our main concern is the market situation after October when furloughing is removed by the government and the domino effect this is probably going to have on unemployment and in turn rental expectations and demand.
As can be seen by the chart showing the age profiles of tenants in Bournemouth almost half the tenants in the area are in the 19-29 age group which is around the same profile separations for the South West as a whole.
There is one major difference when comparing Bournemouth with the rest of the South West in terms of property types as Bournemouth has around double the number of rental properties as apartments (77.2%) in comparison with the South West Region (40.9%).