A new index from Landbay Rental suggests that UK rents are rising fastest for those living in three-bedroom properties.
Data from the report shows that three-bedroom homes recorded a 4.6% annual growth in August, in comparison to the UK average of 3.3%.
Landbay Rental’s index is the first to track rental trends to the county and London borough level, in combination with the number of bedrooms. The areas where three-bed rental rises are highest are predominantly located within commutable distance of London, such as Windsor, Southend-on-Sea and Swindon. Growth in these regions was up annually by 22%, 20% and 13% respectively.
Throughout Britain as a whole, rents increased by 3.3% in the 12 months to August to stand at £1,281, well ahead of inflation. However, rents have slowed from a peak growth of 4.9% recorded in February.
What’s more, data from the investigation shows that average UK rents fell between May and July 2015, with August seeing the first monthly growth since March.
For all property types, the largest rental rises outside of London were in Southend on Sea (12.6%), York (12.1%) and Wrexham (11.1%). At the other end of the scale, rents in Cheshire fell by 6.9% in August, followed by Aberdeen (5.7%) and Buckinghamshire (3.5%).
‘At the national level, rents performed very strongly in 2014 after a dip in 2013,’ pointed out John Goodall, chief executive officer of Landbay. ‘This year has seen rents continue to grow, but at a slower rate. The macro trends at the national level aren’t uniform when you drill into the local level and look at different types of property, which is why we want to establish a rental index that gives landlords, tenants and others interested in the private rented sector access to a more granular level of insight,’ he continued.
Concluding, Mr Goodall said, ‘for investors in the private rental sector, our data makes family homes in the south east look like an attractive proposition. As well as performing well now, rents for three bedroom homes saw the smallest falls when rents dipped in 2013. The challenge for investors looking to benefit is finding suitable properties for professionals at a cost that produces a good yield.’