It is estimated that the cost of flatsharing in the UK will increase by 4.3% by the end of 2013, according to flatsharing website easyroommate.co.uk.
The research carried out by easyroommate.co.uk found that rents should rise on the back of falling numbers of rooms available to rent and consistent demand from renters in the flatshare market which has already caused average rents to grow by an average of 0.35% a month since January 2012.
With the supply and demand trends showing no sign of reversing, easyroommate.co.uk believe that flatsharers can expect rents to rise by an average of 4.3% over the course of the year. Average rents are expected to reach £448 per month by December 2013 compared to the current average of £430 per month. If accurate, this expected increase to rents will drive up the average annual flatshare cost by £219.
Since January 2012 the number of bedrooms available for flatsharers to rent has fallen by over two fifths (44%). Over the same period demand has remained steady and this has put even more strain on an already stretched supply of rooms. This supply and demand imbalance has caused rents to rise 3.6% (£415 to £430 per month) since January 2012.
At a regional level, the West Midlands has seen the largest rise in average flatshare rents over the past year. If this rate of growth continues, flatsharers in the West Midlands can expect to see average rents end 2013 3.9% higher than their current level. It is a different story for sharers in Wales who have seen the largest fall in average rents with prices dropping 2.6% over the same period. If this trend continues flatshare rents in Wales will fall a further 3% this year. London has seen rents stay relatively flat over the last year with average monthly prices growing only 0.3%. The same growth this year will see rents rise 0.7% by the end of 2013.
Jonathan Moore, director of easyroommate.co.uk, said: “The last few years have been tough for renters and 2013 will be no different. Falling numbers of rooms available to rent is putting strain on supply and leading to higher and higher rents. Flatsharing remains a much more cost-effective option for renters but anyone hoping to rent a room this year needs to be aware of the rising costs and factor this into their budgeting.”
Article courtesy of Property Investor Today