Rental costs for one-beds on the rise

Arrow up houses 700x450The average rent for a one-bed property in the UK increased by 1.57 per cent year-on-year, the latest Landbay Rental Index shows.

One-bed rents grew by 0.12 per cent in September, accelerating from 0.09% per cent the month before, according to Landbay.

Rents for two and three-bed properties also grew in September, but at slower rates: 0.09 per cent (from 0.12 per cent) and 0.11 per cent (from 0.18 per cent).

Overall rental growth has showed signs of easing in the wake of July’s Brexit vote, from 0.12 per cent in August to 0.09 per cent last month.

Landbay says the fact that one-bed properties are bucking this trend suggests demand for smaller rental properties remains buoyant.

The figures follow a call from Housing Minister Gavin Barwell, at the Conservative Party Conference, for lower minimum space requirements for new build properties, to improve affordability for first time buyers.

Landbay chief executive and co-founder John Goodall says: “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.”

He adds: “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.”