Traditional wisdom is that investors prefer one- or two-bedroom properties over studios and larger three-bedroom options. It is felt that these properties are more flexible and offer a higher chance of being rented out to either single occupiers, couples or small families.
It is this mix of tenure that many landlords seek as being able to appeal to them all can increase security and reduce void periods. This is confirmed by the latest English Landlord Survey which shows that couples with or without children, as well as single occupiers, make up the most “preferred” classes of renters for the majority of landlords.
However, recent trends indicate that this may be changing and the appeal of larger three-bedroom properties is increasing.
While one- and two-bedroom flats will never become less popular, one of the legacies of the Covid-19 pandemic is a ‘race for space’ which is coming to affect the housing market more and more as the months go on.
This global event caused more people to spend more time indoors than ever before, and this has led many to rethink what is most important for them with their homes. Additionally, working from home is becoming increasingly common despite the desire of many commercial building owners to force people back to the office. This is a trend that is not going away, and when people work from home, they need more space than before.
A consequence of this is that larger three-bedroom properties are more popular than ever before with the same types of people. Couples, families and others want more space to live and work thanks to the new realities of post-pandemic life – and they are willing to pay a premium for it.
This is especially true in city centres where gardens are rarer. Without the provision of private outdoor space, maximising the space within your home is even more important than before, and if you can provide that to the market then you are likelier to find tenants who are more satisfied and stay in the property longer – increasing your potential rents and cutting down on potential void periods.
The relative rarity of three-bedroom properties on the city centre market also helps to ensure their popularity. As the ‘race for space’ continues, the competition for this scarce property type will continue to grow – to the benefit of investors who have purchased them.
For example, Preston city centre is one of the most popular and fastest-growing rental markets in the UK thanks to the city’s economic success, the high quality jobs on offer and a lifestyle the envy of cities twice the size.
However, a look at Zoopla shows that there is currently an overwhelming bias towards smaller apartments available for rent.
Of all the apartments the search engine has listed in Preston, 123 are one-beds and 66 are two-beds. Just 20 are larger three-bedroom apartments. The low number of available apartments overall speaks to how busy the Preston market is at the moment, and the fact that fewer than 10% of them are larger homes signals an opportunity.
Developments like The Exchange, which have a number of larger three-bed apartments still available for purchase, are in high demand thanks to its elevated modern living standard which is unmatched in Preston, and its location right in the heart of the city’s newest emerging neighbourhood.
In addition to that, The Exchange has a range of amenities which make it stand out from the crowd even further and ensure it will be an extremely popular home in the city:
- Communal lounges
- Residents’ roof garden with views over Preston
- Concierge service
- 5-star gymnasium
- City centre location, minutes from train station
Bishopsgate is a recently completed development in Preston from The Heaton Group – the same developer as The Exchange – which is achieving very high rents for its 3-bed apartments and has a waiting list of tenants ready to move in:
Find out more about The Exchange buy clicking here >>
There is no ideal size for an investment property, and what you will purchase should be defined by your overall investment strategy. However, the heart of successful property investment is to anticipate market needs and provide them.
By purchasing a larger, three-bedroom city centre property, you could gain access to a larger pool of potential tenants who are looking for more space and a longer-term tenancy. If you focus on city centre markets like the aforementioned Preston, you could attract the type of young professional tenants and families who are willing and able to pay a premium for this extra space.
Want to learn more about Preston, The Exchange and the benefits of buying in a larger property? Get in touch with our team today to learn more by clicking here >>