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Rents for one-bed properties rise in September 2016

The average rent for a one-bed property in the UK grew by 0.12% in September, accelerating from 0.09% the month before to bring year on year growth to 1.57%, according to the latest Landbay Rental Index. Rents for two and three-bed properties also grew in September, but at slower rates, 0.09% (from 0.12%), and 0.11% (from 0.18%).

Overall rental growth has showed signs of easing in the wake of July’s Brexit vote, from 0.12% in August to 0.09% last month. The fact that one-bed properties are bucking this trend suggests demand for smaller rental properties remains buoyant. Around the UK, Scotland saw the greatest rental growth for one-beds, rising 0.36% in September, closely followed by East England at 0.35% and the East Midlands at 0.29%. London was at the other end of the scale; one-bed rents were flat in September, while all-bed rents fell by -0.04%.

The figures follow a call from Housing Minister Gavin Barwell, at the Conservative Party Conference, for lower minimum space requirements for new build properties, to improve affordability for first time buyers. However, with rent payments remaining the main financial pressure for aspiring homeowners, and 1.8m new households expected to rent rather than buy by 2025,the continued growth in one-bed rents demonstrates how important it is that the buy to let sector is not overlooked in the provision of new affordable housing.

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