Published: 03/02/2017 Last Updated: 03/02/2017 12:20:19 Tags: Supply And Demand For 3 Beds In London On The Up
There is clearly a gap in the market meaning that tenants are willing to pay over the odds for a three bedroom property in London according to figures from the National Rent Review from buy to let mortgage lender Landbay. There are many more smaller homes available but rents for three bedroom properties in London continue to grow while one and two bedroom homes are getting cheaper, according to the research.
Across the country the uplift in rent between one and two bed properties excluding London, is 19%, and only 15% when rising from a two bed to a three bed. However, in London rents jump by twice the national average from £1,455 for a one bed to £1,926 for a two bed and three times the national average to £2,690 for a three bed property. Three bed properties are the only property size in London where rents have ended the year without notable falls, remaining flat year on year by the end of 2016, at an average rent of £2,690.
Hawes & Co know that people are now renting for three years longer than in 1995, with growing families arriving before homes have been bought. According to John Goodall, chief executive officer of Landbay, this demand for family size homes is set to keep rising. ‘In London, where space is already at a premium, a relatively well served two bed rental market means those looking for more space now pay dearly for that extra bedroom,’. For London landlords who have the opportunity to offer a three bed property in London they will benefit from a 40% uplift in rent for no more than 30% more living space.