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Buy to Let

Renters seek three-bed homes

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
25/09/2015

Three-bedroomed properties have increased in popularity, with rents rising faster than any other property types.

Market analysis released by Landbay found that the average rent charged for a three-bed property was 4.6% higher than a year ago.

This is higher than the 3.3% averaged across all property types, the firm said.

London commuter towns including Windsor and Maidenhead saw the biggest demand for three-bed properties, with many families moving out of the capital to these towns.

In both these locations the average three-bed costs £1,936 per month, 22% higher than a year ago. Other big risers included up-and-coming Southend on Sea (up 20% to £1,121) and Swindon (up 13% to £813).

Across all property types the average rent increased, with York (up 12.1%) and Wrexham (up 11.1%) home to the biggest rises outside of the South East.

Not all rents increased however, Cheshire (down 6.9%), Aberdeen City (down 5.7%) and Buckinghamshire (down 3.5%) were all lower than the previous year.

John Goodall, co-founder and CEO of Landbay, said the high rents charged in London were forcing up prices in surrounding areas.

“Rents for three bedroom family homes are racing ahead of the rest of the market at the moment. This trend is particularly strong in commuter hotspots outside of London, with 12 of the 20 areas with the fastest growing three bedroom rents within an easy commute of the capital,” he said.

“The jobs market is firing on all cylinders at the moment, and it looks like professionals with families are relocating to where the best paying jobs are. People relocating for a new job often rent first and buy later. Renting is a great way to settle into a new area fast – and to ‘try-before-you-buy’ to see if you actually like living there.

“For investors in the private rental sector, our data makes family homes in the southeast look like an attractive proposition. As well as performing well now, rents for 3 bedroom homes saw the smallest falls when rents dipped in 2013. The challenge for investors looking to benefit is finding suitable properties for professionals at a cost that produces a good yield.”


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