HMO market conditions are strong in Nottingham with an increase in the demand side. This was driven a by a record breaking influx of students at the end of QTR 2. Many student agents have reported selling out for the first time in years. Indeed, for the first time ever in our entire 5 year’s trading history, one of our lease properties is a 100% student house! This was in NG7 too, an area that in recent years where student demand has been diminished due to the many new build student City Centre developments.
Even though it’s now December and a quiet month, stock continues to go well with void periods for just a few days, despite outsourcing viewings. This is an excellent position for the market to be in and whilst QTR3 is always good in Nottingham, this year it seems based upon some very solid fundamentals i.e. increasing student demand with supply only increasing marginally. Our refurbishment decoration, and marketing strategy for all empty rooms is also driving sales too. Having a ‘hotel like’ approach to décor and keeping on top of the latest design trends keeps the interest in our properties at a high level and is essential in the current market.
In response to these buoyant conditions in QTR3 in Jan 2019 we are rising rents across our company for some of our rents which are at £360-370 mark, now seems extremely cheap. We will be reversing some of the discounts we offered in QTR4 2017/18 which was our worst ever QTR! What a turnaround! Following these rent rises our average rent will still be around the £380-390 mark which still sits just below the Spare Room Nottingham average of £410.
Nationally Nottingham seems to be performing well above other cities where there have been anecdotal reports of weaker demand and many voids. Given that the demand side has been largely driven by students, and the cities in which the weaker demand has been reported are not traditional University towns, it shows once again the important of student demand on overall HMO market and how it can impact not just on the student housing but also the wider professional HMO market.