Average rents for one-bed rental properties continued to grow during September, despite overall rental growth slowing last month.
Landbay’s latest Rental Index shows that average rents for one-bed properties grew by 0.12% in September, up from 0.09% in August.
This equates to year-on-year growth of 1.57%.
The figures, which are crunched by MIAC, reveal that overall rental growth slowed to 0.09% last month from 0.12% in August.
Average rents for two and three-bedroom properties also increased last month, but by a smaller margin than one-bed homes.
Landbay reports that average rents for one-beds in the capital remained flat during September, while overall average rents dipped by 0.04%.
The only other region to record a monthly decrease in average rents was the North East.
National annual rental growth now stands at 1.65%, according to Landbay, down from 1.83% in August.
The firm calculates that the average national rent during September was £1,187 (£747 excluding London and £1,891 in the capital).
“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,” says John Goodall, chief executive and co-founder of Landbay.
“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.”
Goodall says the overall picture is one of ‘moderating rents’ but that their is an ‘undersupply’ of one-bed rental properties.