Loughborough Private Rents Hit £12.43 per Square Foot

As I am sure you are aware, one the best things about my job as an agent is helping Loughborough landlords with their strategic portfolio management. Gone are the days of making money by buying any old Loughborough property to rent out or sell on. Nowadays, property investment is both an art and science. The art is your gut reaction to a property, but with the power of the internet and the way the Loughborough property market has gone in the last 11 years, science must also play its part on a property’s future viability for investment. 

Many metrics most property professionals (including myself) use when deciding the viability of a rental property is what properties are selling for, the average rent, the yield and an average value per square foot. 

However, another metric I like to use is the average rent per square foot. The reason being is that is a great way to judge a property from the point of view of the tenant ... what space they get for their money. Now of course, location (location, location as Phil and Kirstie would say) has a huge influencing factor when it comes to rents (and hence rent per square foot). Like people buying a property, tenants also have that balancing act between better/worse location, more versus less money and size of accommodation (bigger and more rooms equalling more money) and where they live (location) verses making ends meet. 

Interestingly, I know there are a lot of you in Loughborough who like to see my statistics on the Loughborough property market, so before I talk about the rental figures per square foot, I wanted to share the pound per square foot on the values. In Loughborough, the current AVERAGE figures are being achieved (and I must stress, these are average figures, so there will be an enormous range in these figures), but on average, properties in Loughborough, split down by type are achieving …  

  • Loughborough Detached Property - £238 / sq ft 
  • Loughborough Semi Detached Property - £216 / sq ft 
  • Loughborough Terraced Property - £202 / sq ft 
  • Loughborough Apartments - £212 / sq ft 

So, the rental figures - the extent of space you get for your rent is replicated in the space you get for your money when buying a property. The average size of rental property in the Loughborough area is 853.1 square foot (interesting when compared to the national average of 792.1 square foot).

This means the average rent per square foot currently being  
achieved on a Loughborough rental property is £12.43 per square foot per annum. 

So, what we can deduce from this?  Well the devil is always in detail! 

Whilst I was able to quote the average overall figure and the fact that my research showed it was quite clear from data that there is a relationship between the average pound per square foot, the figures on property values and average pound per square foot on rental figures as a property grows in size. However, something quite intriguing happens to those figures, in terms of what the property will sell for and what it will rent for, when we change and increase the size of the property.  

My research showed that doubling the size of any Loughborough property doesn’t mean you will double the value of it … in either value or rent. This is because the marginal value increase diminishes as the size of the property increases. Ilayman’s terms … subject to a few assumptions, double the size of the house doesn’t mean double the value … what really happens is a doubling of the size gives only an approximately 40% to 65% uplift in value, but here comes the even more fascinating part … when it came to the rental figures, double the size of the house meant only 20% to 45% in increase in rent. 

In a future article, I will be discussing the actual added value that an extension can bring ... but in the meantime, in an overall and sweeping statement, most of the time it makes sense to extend if you are going to live in the property as long as the extension is proportionate to the property, but if you are going to rent it out ..possibly not. 

For more thoughts on the Loughborough Property market, and for great Buy to let deals, irrespective of which agent is selling the property, please visit the Loughborough Property Market Blog.