Renting a room for landlords and for tenants is becoming much more popular – especially in more expensive areas like London.
Renting a room is great for tenants as it can cost a lot less. It’s great for landlords too as in the more expensive areas, getting the rent to cover costs can be difficult at the average 5.5% yield, while renting rooms can deliver a much higher yield, although bear in mind costs to maintain tend to be much higher as you have more people using kitchens, bathrooms etc.
DOWNLOAD THE SPAREROOM RENTAL INDEX
According to SpareRoom’s rental index for April:-
UK rents rose, on average, by an inflation busting 6.3% year on year.
|Big risers:||April 2014||YoY % increase/Decrease|
|Aberdeen||£119 per week||+3.5%|
|South East London||£145||+3.5%|
|Top room rents:|
|London West End||£214||-1.5%|
|East Central London||£210||+1%|
|Best value room rents:|
SpareRoom.co.uk comment that “South East London now seems to have overtaken East London as the capital’s fastest growth area for rents, perhaps reflecting the ‘good value’ it represents over other parts of the Big Smoke.”
They also point out that longer term “we note that the fastest growth has been in Northern Ireland,where a 26% increase in year on year rents is in evidence from our data. Wales is the most stable region, with a rise in rents of under 1% since last year.”