Last Updated: 21/10/2016
If you are thinking about investing in a rental property you might want to consider buying a one bedroom home, because according to Landbay’s latest Rental Index, the average rent for one bedroom grew by 0.12%, and increase of 0.09% in August, a 1.57% growth year on year. Whereas average rents for larger properties, two and three bedroom increased at a slower rate. 1 The National annual rental growth is 1.65%, down from 1.83% in August.
Landbay's latest Rental Index showed that in September the average rent for one-bed properties grew by 0.12% up from 0.09% in August, year-on-year this amounts to growth of 1.57%, so despite overall rental growth slowing last month it would seem that the average rent for one-bed rental properties continued to grow. Average rents for two and three-bedroom rental properties also increased last month, but by a smaller margin than one-bed homes.
The average national calendar rent during September was £1,187 (£747 excluding London and £1,891 in the capital). John Goodall, chief executive and co-founder of Landbay says, "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."
The demand for rental property remains strong so if you would like to find out more about investing in property or would simply like some advice then why not pop into your local branch of Hawes and Co or call us on 0208 946 1000.