Rents are currently rising at their fastest rate in 3 years, driven by a lack of new homes. With the population continuing to increase this drives up demand in the face of few new homes coming to the market. This demand has been pushing up property values as a result.
The Office for National Statistics has reported that average rents climbed by 2.7% annually in September, compared to the previous year. This is the largest annual increase since October 2012. In the past 4 Â½ years there has been an average increase of 11% across Britain, a faster rise than inflation over the same period at 8%.
In addition to rent increases, property values have also risen and are expected to rise by 25% over the next 5 years. Across the country, this will be an average increase of £60,000 on each property, according to figures from the Centre for Economics and Business Research.
Tamworth has started to see a few new developments pop up, with building now underway on 3 substantial developments with Morris Homes, Walton Homes and Redrow. Taylor Wimpey are also looking to build homes to the North of Tamworth behind Browns Lane. Permission for this development is expected to go through as the land comes under the governance of Lichfield District Council and not Tamworth Borough.
These new developments will also have a proportion of affordable homes included to try and help local residents get onto the housing ladder. However, with the price of houses still so high, it is still very difficult for buyers to afford these 'affordable homes'. They will also face some difficulties in selling these properties on, with the council putting tight restrictions on who these properties can be sold on to.