Date Published 06 July 2012

Letting agents are likely to see flatshare rents increase in the forthcoming months as improvement is expected to remain stagnant in the first-time buyer market.

Director at SpareRoom Matt Hutchinson described how prices in this area of the rental sector often "creep up" rather than make a "dramatic" leap.

This is due to a lack of movement in the first-time buyer market meaning there is greater demand for rooms to let.

"People aren't moving out of rentals and moving on and things aren't freed up, so rooms have more of a premium," Mr Hutchinson commented.

However, it was noted that often flatshares are cheaper due to the live-in landlords not having as many large outgoings and overheads as traditional rental owners.

A recent report from revealed that flatshare rents have increased to a record high, with prices rising from £368 to £375 in May, which is a two per cent rise so far this year.