Increased demand for one-bedroom rented flats
The index showed that the annual rate of rental price growth for one-bedroom properties rose to 3.9 per cent in September, up from 2.9 per cent in August.
The average one-bedroom rented flat now costs £1,054 a month, according to the monthly Landbay Rental Index.
The index tracks rental trends to the county and London borough level in combination with the number of bedrooms.
Edinburgh (up 12 per cent), Swindon (up 11 per cent) and Southend-on-Sea (11 per cent) saw the biggest rises in rents for one-bed flats, albeit from lower average rents than some of the other areas to see big year-on-year increases.
The index also revealed that rents for three-bed properties have seen the biggest overall rental rises, up 4.8 per cent year-on-year to £1,489 in September.
Across all properties, UK rents rose by 3.7 per cent in the past year to an average of £1,288.
John Goodall, co-founder and CEO 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.
“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.”