9th
Oct 2016
Good news for landlords renting out one bedroomed flats as rents for these types of properties are continuing to rise in September, in spite of overall rental growth decreasing.
A leading P2P lender's latest Rental Index reports that one bedroomed properties average rents throughout September rose by 0.12 %, whereas August's increase was 0.09%, which is equivalent to a year on year growth of 1.57%.
The index also shows that two and three bedroomed properties enjoyed an increase in average rental growth in September however at a lower rate than one bed roomed properties.
The lender states that one bedroomed properties in London stayed the same in September but overall rents fell by 0.04%. The North East was the only other region that had an overall decrease in rents in the same month.
September's national annual rent was 1.65% increase, which was a fall from August's 1.83%. The firm estimates that September's national average rent was £1,187, with the capital standing at £1,891 and elsewhere was £747.
Chief Executive of the lender, John Goodall said: "There’s no denying most people aspire to own their own home, but it’s critical that efforts to bolster the country's housing stock don’t overlook the importance of the buy to let market for a supportive and sustainable housing market,
“RICS’ forecast that 1.8 million more households will be looking to rent by 2025 is a stark reminder of the scale of future demand for the rental market," he says.
"The fact remains that those building up toward a house purchase rely on a well served buy to let market to ensure that excessive rental growth doesn’t dampen their purchasing power."
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