Landlords who opt to rent individual rooms out may be interested to learn that flatsharing rents fell for the first time this year, after having risen steadily for since the beginning of the year, according to the latest rental index from Easyroommate the global flat sharing website. Easyroommate data shows that the average flatsharing rent in the UK fell by 1% to £375, following the summers peak season when rental asking prices stood at £380, the highest recorded level. Overall the average rent has increased by 2% since the beginning of the year, and there has been an increase of 4% in 12 months.
Implications of Rising Demand for Flatsharing
This increase coincides with the rise in the number of individuals searching for properties on the website. As homeowners wake up to the increase in people looking for properties they are more likely to increase rent as a way to maximise their earnings. Despite the increase in the average flatsharing rental price it is still significantly cheaper than renting privately. According to the LSL rental index rents hit a record high of £725 per month in August, in contrast the flatshare rental asking price in August was significantly lower, approximately £350 cheaper.
Future Trends and Cost-Effectiveness of Flatsharing
Jonathan Moore, director of Easyroommate.co.uk, comments: “With rents in the remainder of the private rental sector continuing to rise and the economy still in the early recovery stages, more and more people are choosing to flatshare. At Easyroommate we have witnessed a gradual but marked increase in the number of people using our services since the beginning of the year. The number is continuing to grow even after the peak student period has come to an end.” Moore continues: “Rents in London will continue to increase as demand outstrips supply. However, compared to the rest of the rental sector the increase is minimal and across parts of the UK rents have actually fallen making flatsharing a cost effective alternative.”
Article courtesy of Property Investor Today
