One bed rents accelerate
Demand from graduates renting near their first job is thought to have pushed up prices – with the biggest rises coming in Edinburgh (12%), Swindon (11%) and Southend on Sea (11%).
The UK currently has the lowest unemployment rate since 2008, last week’s government Labour Market Statistics show.
John Goodall, co-founder and chief executive of Landbay, said: “The upward trend in UK rents can simply be explained with one word, jobs. The UK’s job market is going from strength to strength and the rental market is staying hot on its heels.
“The sharp seasonal jump in rental growth for one beds reflects a buoyant graduate job market as people move to their first job. Flexibility and freedom is the order of the day for first jobbers, and one bedroom flats offer the perfect springboard to take the plunge into full-time working life. One bed flats are also popular for couples and young professionals who don’t want to flat-share.
“Higher housing costs can be a nightmare for tenants when other costs are rising and their wages are stagnating. Fortunately these rent increases come at a time of growing wages and falling costs, according to the latest inflation figures, so while they may not be welcome they don’t leave the same dent in consumers’ pockets.
“For potential investors, these rental figures show how resilient residential property is as an asset class – even when you have unusual economic forces combining like the current mix of low inflation, low interest rate, and high wages.”