So what is the 'Halo Effect'?
In a very interesting snapshot of the latest 2021 rental stats produced by Zoopla it appears that whilst the rental figures for city centres are still falling the surrounding commuter belt is rising and demand outweighs supply!
This is prevalent in most of our major cities including London, Manchester, Leeds, Birmingham etc. Central Birmingham for example has shown a decrease in rental values by 3.4% but in surrounding boroughs such as Bromsgrove, Sandwell and Wolverhampton rents grew by an average 5%. The Halo Effect!
The main reason for this appears to be COVID-19 and the numerous lockdowns we have had to endure. People moving out of City Centres to find more indoor and outdoor space. Houses with gardens in these areas are experiencing the largest growth.
So, should this change your strategy if you are buying a rental property or is this a temporary glitch?
It is very difficult to advise either way at the moment but i do believe this pandemic has and will change the way we live and work for many years to come. Inner Cities will bounce back as we exit this pandemic but I do believe 'The Burbs' is where I would be putting my investment money at the moment and for the long term.
