Rent rises for one bedroom flats increased significantly last month, according to the second Landbay Rental Index.
Average rents for one bed flats increased by 3.9% on an annual basis in September, up from 2.9% in August. This brings the average monthly rent for a one bed flat in the UK to £1,054.
The Index, which is powered by MIAC and uses data from the Office for National Statistics, says rents for one bed flats have been pushed up by high demand from recent graduates looking to rent a property near their new job.
The biggest annual rent rise for one bedroom flats was recorded in Edinburgh at 12%, this was followed by Southend-on-Sea at 11%.
According to the index the biggest rental rises, however, have been recorded for three bedroom properties, up 4.8% on an annual basis to £1,489 in September.
During September, across all properties UK rents increased by 3.7% in the last year to an average of £1,288 – the first increase in annual growth since February.
“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,” says John Goodall, co-founder and CEO of Landbay.
“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.”