One-bedroom rents rise in September

The most recent Landbay Rental Index has revealed that the average rents for a one-bedroom property in Britain grew by 0.12% in September.

This was a rise from the 0.09% recorded in August, bringing year-on-year growth to 1.57%.

Rental rises

Further data from the report shows that rents for two and three-bed homes also increased slightly during September, by 0.09% and by 0.11% respectively.

Overall, rental growth has shown signs of slowing following the historic vote to leave the European Union. One-bed properties however tend to be reversing this trend.

Scotland saw the greatest rental growth for one-bedroom properties, with rents increasing by 0.36%. This was closely followed by the East of England, where a rise of 0.35% was recorded. The East Midlands recorded growth of 0.29%.

However, London saw rents for one-bed flats slip by 0.04%, but many investors could be taking out landlord insurance on these types of property in the near future.

One-bedroom rents rise in September

One-bedroom rents rise in September

Requirements

These figures come as new Housing Minister Gavin Barwell called for lower minimum space requirements for new build properties, in order to improve affordability for first time buyers.

With this said, rental payments remain the largest financial pressure for would-be homeowners. It is important then that the importance of the buy-to-let sector is not overlooked in favour of new affordable housing.

John Goodall, CEO and co-founder of Landbay, noted: ‘Housing has been high on the political agenda this week and it seems that policy makers are resolute in their ambitions to make home-ownership more affordable for people across the UK. There’s no denying most people aspire to own their own home, but it’s critical that efforts to bolster the countries housing stock don’t overlook the importance of the buy-to-let market for a supportive and sustainable housing market.’[1]

‘The challenge is exacerbated by record low interest rates, which may make mortgage borrowing cheaper for those able to buy a home, but also mean that house prices, and indeed rents, are growing more quickly than the money they have saved in bank and building society accounts. The overall picture is one of moderating rents, which is good news for those in shared accommodation, but an under supply of one-bed properties will continue to restrict the ability for aspiring homeowners to save up for a house of their own,’ he added.[1]

[1] http://www.propertyreporter.co.uk/landlords/september-sees-accelerated-growth-of-one-bed-rents.html

 

 

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