The rise of the two-bed rental

23 August 2023

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In order to secure strong returns now and into the future, it is vital for savvy investors to stay on top of changes in the market. Traditionally, one-bedroom apartments were the most popular choice for tenants, which in turn made them more attractive to property investors. However, in recent years there has been a swing in demand towards two-bedroom units, here’s why:


Cost of living

The rising cost of living is a major factor in the rise of the two-bed rental, with many tenants now sharing a rental property with a colleague or close friend, as well as couples taking the next step and moving in together.

The rapid increase in energy bills in particular has seen many people move from one-bedroom rentals to two-bed apartments so that bills can be shared. With household bills set to remain expensive, coupled with stubbornly high inflation and rent rises which have seen average rents in London soar to £2,500 per month for the first time, more renters are looking to share than ever before.


Work from home culture

Additionally, the coronavirus pandemic accelerated the remote working culture, which resulted in many tenants now looking for a rental property that has space for a home office. This is not a short-term trend, as the figure now stands at 38% of working adults choosing to working from home at least some of the time. Thanks to more employers changing their policies to accommodate hybrid working and an increase in companies offering fully remote positions, we can expect to see this figure continue to rise.


Unaffordable housing

Last but not least, the unaffordability of housing for first-time buyers has caused an increase in longer tenures for renters, with many looking to upgrade to a rented two-bedroom apartment. This also applies to people who are planning on starting a family and require extra space for children.

In fact, long-term trends in the UK property market mean that the number of renters has doubled in the past two decades to 5 million households, including one in two Londoners. As people live in rented accommodation for longer due to the inability to take out a mortgage, the popularity of two-bed apartments is seeing significant growth.


Support with buy-to-let investments

The rise of 2 bed rentals brings with it a strong opportunity for property investors, looking for strong rental yields and capital growth. For more information contact your advisor today to find out more about investing in UK property.

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Lewis Finn

Experienced Sales Manager with a demonstrated history of working in the financial services industry. Specialising in offshore investments & UK investment property.

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