Landlords with family properties are in the pound seats when it comes to rent increases, according to data from lettings agency Hamptons.
It says the desire for more living space, a key feature of the pandemic, has driven up rents on larger properties faster than on smaller homes.
In October, four-bedroom properties recorded the strongest rental growth. The average rent on a four-bed home across Britain rose to £1,949 pcm, up 10.6 per cent on the same time last year and nearly triple the rate of growth of a one-bed which rose 3.7 per cent year-on-year to stand at £875 pcm.
Strong rental growth has meant that the average one-bed in Britain now costs the same amount as a two-bed did in 2016. This shows that the cost of trading up from a one-bed to a two-bed rental property has doubled over the last three years, says Hamptons.
Last month it cost £144 or 16 per cent more to rent a two-bed home, more than double the gap (£68 or eight per cent) in October 2018. This equates to an extra £1,728 each year.
The cost of moving from a two-bed to a three-bed has also risen. Last month a tenant would have had to pay an extra £142 or 14 per cent each month to trade up from a two to three-bed home, £30 more than in October 2020. This will cost the average tenant an extra £1,705 each year.
The average two-bed home now costs the same amount to rent each month as a three-bed did in 2018.
Unsurprisingly London is the costliest region in the country to trade up, both in absolute and percentage terms. Last month the average two-bed in the capital cost £567 or 42 per cent more each month than a one-bed. At the other end of the scale, the North East is the cheapest region to swap a one-bed for a two-bed (£102 or 20 per cent).
The cost of trading up has risen the most in the East Midlands. Here it cost 12 per cent or £63 more each month to trade a one-bed for a two-bed home than in October 2020. This is because rents on one-bed properties in the region have fallen by 0.2 per cent year-on-year, while two-bed rents have risen by 9.7 per cent.
London is the only region where it’s cheaper to trade up than it was last year. This is because rents on one-bed properties in the capital have risen faster than two-beds. Much of the demand for one-bed homes in London has been driven by younger tenants and pied-à-terre hunters returning to the capital, which in turn has bolstered rents.
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