Will rising energy costs affect property prices & rents?

Posted: 9/10/2021

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Energy prices are going up significantly. Firmus rates are up a massive 35% this month and that will leave the average house holder with another £182 a year in gas bills according to the Consumer Council. Oil won't escape the rises either, so what exactly will this mean for property values and rent prices. For the latter, it should in theory mean that tenants will have less to spend on rent and rent prices should stagnate or fall. However, that is without taking account of many other economic factors and whilst furlough has ended, we appear to be enjoying a period of very low unemployment. At Key One Property we have seen exceptionally strong rental prices in Belfast, and considerable competition for some homes. That may be affected slightly by rising energy prices, but it may also be offset by what appears to be very high employment at the minute. High rents drive high property values, so we don't think we will see a fall and believe that we will continue to see rises in property values. Of concern to us as letting and management agents are those tenants on low income who decide to skimp on their heating. This can lead to increased dampness, not good for a tenant's health. In addition, not good for a landlord's property. We are exploring what we can do to increase energy efficiency in homes. Some grants are available for tenants on low incomes. If you are interested in Buy To Let, we offer impartial buying assistance - contact us at office@key-one.co.uk.

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