Three bedroom rental properties in central London are in exceptionally high demand, according to a leading national estate agent.
High demand for three bed properties sees them let out immediately after going to market, says Zoe Rose – head of London lettings at Strutt and Parker.
“As soon as we get a good one on our books, it lets in a flash,” she explained, adding that three-bedroom homes could be the most sought after at present.
Rose suggested that many buy to let investors see one and two bedroom properties as failsafe options but that attracting tenants and optimising yields may be easier for a larger home.
She pointed to two examples of three bedroom properties in South Kensington and Ladbroke Gardens which were let at their asking price just two days after first viewing.
This view agrees with a recent report from Rightmove that said more than a third of its top 5,000 most viewed homes were three bedroom properties.
“Owning a three bedroom property is clearly good news for landlords,” added Ms Rose. “They are a great investment because they have such broad appeal.”
She added that these homes were popular among young couples, small families and older couples looking to downsize while a spare room was also appealing for people who often work from home.
More homes for rent
In central London, properties that rent for between £2,000 and £2,999 per week have seen an 18.4 per cent increase in transactions compared to last year.
Meanwhile those renting for between £3,000 and £3,999 saw transactions increase by 14 per cent and rental deals of £4,000 per week or more were up by 16.7 per cent.
Strutt and Parker are predicting a 2.5 per cent increase in lettings prices for prime central London in 2015, following on from two per cent growth seen in 2014.
The flexibility of renting and potential interest rate increases mean more people are staying in the rental market; according to the firm.
New tenant registrations are also up 63 per cent year on year and oversubscribed with a boost in supply expected in coming months as some properties originally intended for sale are entered into the rental market instead.