Rental rises are ‘just hype in most places’ warning

9 02 2012

Despite much hype, rental levels in many regions are still not back up to those of 2008.

The claim has come from Belvoir managing director Dorian Gonsalves, whose firm has been measuring rents for four years.

Gonsalves said: “The Belvoir Lettings Index has been running since March 2008 and during this time we have seen the rise, fall and recovery of the rental market.

Belvoir has over 140 offices nationwide and is expanding rapidly, but at present we not have a strong London bias. We have learnt about variations in rental data and how to analyse the information to make sure we can track trends accurately and report on a regional and even office-by-office basis.

In 2012, with over four years of analysis, we can now confidently comment about national rental trends, regional differences and local changes at office level.

During 2011 there were frequent reports in the national press about the stratospheric rise of UK rents. However, although the Belvoir Index reveals rental increases in 2011 versus 2010, many regions have still not recovered to the rents achieved in 2008.

Just five areas across the UK have overtaken the rental heights of 2008.and we are predicting that this regional rental fluctuation is likely to continue throughout the year, however, with regard to other areas, I think rents will be relatively stable and any increases are likely to be very modest.”

He added: “The UK rental market is strong, but landlords should be realistic about the rents that can achieved in their area.”

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