Ilkley’s residential rentals market is like no other

Wednesday, 30 October 2024 09:22

An Ilkley based residential lettings agent who has spent more than two decades working in the Wharfe Valley has revealed what makes the rentals market unique in Ilkley and throughout its neighbouring towns and villages.

Joanna Speight joined Yorkshire’s largest independent estate agent, Dacre, Son & Hartley, as senior lettings manager earlier this year when it launched its new rentals division. Joanna previously spent eight years working in the firm’s established lettings division, which managed more than 600 homes, before it was sold in 2020.

She’s now growing the company’s rentals portfolio throughout Ilkley, Addingham, Burley in Wharfedale, Ben Rhydding, Menston, Otley and Guiseley and all their surrounding towns and villages. The firm currently has hundreds of potential tenants registered on its waiting list, which demonstrates the shortage of available rental property that exists in the local area.

However, high property prices in the Wharfe Valley mean the rentals market in the area is unlike almost anywhere else in the region according to Joanna. She explained:

“Rental homes in Ilkley and the Wharfe Valley aren’t typically owned by professional landlords because of the higher than average value of properties in the area. This means landlords can’t achieve the same yields that they can in most other parts of West and North Yorkshire.

“Instead, the properties might be owned by small-scale landlords who don’t have mortgages on them, and they form part of their pension. In addition to providing a good rental income, these landlords can be fairly certain that the value of the property will increase by at least a couple of percentage points each year.

“This continued price growth also means we manage a lot of properties for people who have moved away for work reasons, but don’t want to sell because they want to maintain a foothold on the property ladder in Ilkley or the wider Wharfe Valley. Otherwise, when the time comes for them to return to the area, they know there’s a high chance that they’ll have to pay a premium to get back on the ladder.

“An upside of this is that tenants are prepared to pay high rents to live in the area. We’ve just listed a magnificent period four bedroom home with large gardens at Farnley, above Otley, for £3,750 per calendar month and we were arranging viewings on the day it went on the market. Another four bedroom detached house in Menston has recently let for £1,950 per calendar month within a few days of going on the market.

“It can seem surprising to some that people are prepared to pay such high rents but there can be a whole host of reasons why it makes sense. Often the tenants are chain-breaking, so they’ve sold their house and are now searching for a home to buy, safe in the knowledge that they can act fast when the right opportunity presents itself.

“Others might be temporarily relocating here with work, from the south of England where rents are higher, and they rent to rent, meaning they’ve rented out their own home in another part of the country, and they’re using that income to rent another home in Yorkshire. For these people, finding the right home is often more important than the rental cost.

“Another advantage to working in a high value market like Ilkley and the Wharfe Valley is that we can cherry-pick very high-quality tenants, so there’s less risk that they will default on their rent, like in some other areas.”

Finally, Joanna adds:

“Crucially though, the tenant demand we’re experiencing isn’t solely at the top end of the market. We have dozens of tenants registered with us who are looking for traditional two and three bedroom homes. These properties are in big demand and we’d urge anyone considering letting such a property to contact us now.”