According to the stats from the Valuation Office Agency, average Coventry rent rates grew the fastest in the West Midlands in the financial year 2015 to 2016. Average monthly prices for rental properties have increased by £25 in the city.
The average price of a rental property in Coventry is now £550 per month, with two-bedroom properties having a median (the middle figure in a series of values) rent of £575 across 1,340 two-beds in the city. This compares favourably to the previous financial year where across 1,535 properties median rents were £550 per month.
In the West Midlands, Coventry was third most expensive for renting, only coming in after Birmingham and Solihull, which average £695 a month.
Rents have gone up nearly five per cent since last year, with Birmingham following closely behind with an increase of 4.2 per cent.
Wages have increased to cover the rises
The figures are revealed just as new statistics show people in Coventry need to put aside more than one fifth of their monthly income to pay their rent.
But the new figures are an improvement on just two years ago, when people needed to pay a lot more out of their wages towards rent.
This indicates a thriving and growing economy in Coventry as wages grow to outstrip past housing costs. Despite the increase in rental prices in the city, the fact residents are paying less towards their rent, shows wages in the city are catching up with rental prices in the region.
Stamp duty changes
Recent stamp duty changes have sought to cool the buy-to-let mortgage market. There is now a 3% surcharge from 1 April, 2016. This applies to anyone who is buying an additional residential property, i.e. a holiday home, buy-to-let or even a main residence you plan to live in.
This applies on top of the new tiered structure for Stamp Duty rates. For example a property valued at £0 to £125k attract 0% Stamp Duty, but 3% if the property is bought as a buy-to-let property.
This healthy rental market should provide good value for money, and the improved employment prospects in Coventry mean that those renting property should get a fair deal too.