Rental market review round-up

Continuing his series of property articles, estate agent Trevor Cooper pens an overview of the current rental market...

THIS final look at renting property in Guernsey – for the time being, at least – is a review of the current rental market.

According to States calculations from the last Housing Needs Survey, there are about 26,000 homes in Guernsey, of which just over 19,000 are owner-occupied, a little over 4,000 are rented privately and approximately 2,600 are rented as social housing from the States Housing Department or the Guernsey Housing Association.

These figures show the rental sector is far behind compared with the owner-occupied freehold market, at a time when the number of properties being rented in England is expected to overtake those owner-occupied.

This is one of two aspects squeezing our residential rental market, the other being the high cost of housing in Guernsey.

In addition to long-term capital appreciation, landlords expect to gross 3-5% of a property's market value in rental income. If they do not, they will consider selling their valuable asset to invest the funds elsewhere. Rents, therefore, are almost always in correlation with house prices.

It is not uncommon for newcomers providing essential services and granted a local market housing licence to be mighty surprised by the high level of rents and limited choice in Guernsey compared with wide swathes of England. Some even reject their lucrative job offers and our enviable lifestyle for no other reason.

The constant high demand for rental accommodation stems from two sources: housing those unable to afford or reluctant to buy a property and those enabled to rent who might not otherwise do so because of the wealth generated by our high level of employment.

Some predict the current economic situation will change Guernsey's limited supply and high-demand situation, as demonstrated in seemingly infallible European economies. But both employment and housing have recovered and prospered following previous crises and, for the moment at least, Guernsey's market conditions amble along and many would not bet against them continuing to do so.

It is difficult to gauge how often properties in the private rental sector are available at any one time. Leases and changes of tenants are not recorded, with the exception of some large commercial leases, unlike every freehold sale of property when the conveyance is registered at the Greffe.

One agent offers properties to rent across the whole housing spectrum, commencing with a bedsit for £550 per month and a one-bedroom flat for £650 per month, both in a building in Cliff Street, near The Strand.

Rents typically range between £700 and £900 per month for a one-bedroom flat in a converted house. Another has a modernised and furnished top-floor flat in Vauvert available at £750 per month. Also available with the same agent, although a good deal more expensive at £2,600 per month, is a delightful cottage in Moulin Huet valley that Renoir himself must have been charmed by as he walked past.

Parking has a significant bearing on rental values.

Advertised through a well-known agent are two extremely neat one-bedroom flats, each at £845 per month and each with an allocated car parking space. A tenant has already been found for the Town flat in Les Amballes, whilst the other is currently available within the Bakery Complex near L'Islet.

As with other larger agents, the business comprehensively covers both local and open markets, as well as commercial and industrial properties. A look at the open market, both to rent and buy, and indeed commercial properties, will be the subject of future articles.

For the time being, and with summer upon us, one agent will tempt prospective tenants with a fully furnished property that, for £1,400 per month, also has superb sea views and is only a few steps away from the beach at the Richmond end of Vazon. Le Petit Jardin is one of the former holiday cottages that now provide permanent accommodation for owner-occupiers and tenants alike.

Largely connected with property management, an advertiser has properties available for sale and to rent including a modern one-bedroom flat priced at £945 per month at Well Road in St Peter Port, with parking and a balcony with views of Herm.

The purpose-built apartments at La Charroterie range between £1,000 and £1,300 per month in relation to the size of the accommodation, as not all of these flats are the same. That is also the case with the stylish Royal Gardens and Marina Court apartments, which usually let at £1,250 up to £1,600 per month and above. Apartments are available in these and other similar developments.

Several agents are offering Courtil St Michel to let at £2,000 per month. Many of us have watched the complete rebuild of this attractive cottage near the Vale Church with interest and the quality of workmanship is exceptional.

At the top end of the local market are Le Vieux Jardin and La Tourelle – the first a spacious barn conversion, the other a much-extended farmhouse, both in the Castel and available at a little over £3,600 per month and a little over £4,160 per month respectively.

This is a small selection chosen at random. Twenty estate agencies offer rental properties and independent landlords advertise daily in the Guernsey Press. But this does not mean there is ample choice across the board for everyone. Restrictions limit the range further for some would-be tenants as house or flat sharing is discouraged and often landlords prefer tenants without children or pets.

House sharing is the only option for some people, yet it is those people most at risk if friendships break down or one of the group is unable to contribute. Those remaining are lumbered – and so is the landlord unless a guarantor is in place at the outset.

Families and pet owners will provide references for their children and pets as well as themselves, or offer to pay a higher deposit than required in an effort to secure a property, and yet some landlords still prefer to have an empty house rather than the potential of nuisance and increased wear and tear associated, rightly or wrongly, with allowing children and/or pets onto the premises.

The Dogs Trust is an English animal welfare charity that has launched a campaign called 'Lets with Pets' aiming to encourage these landlords to reconsider.

Pet owners would do well to view the website www.letswithpets.org.uk, as would landlords as it could increase the market potential of their properties, including a wider choice of good and often extremely conscientious tenants.