Belvoir’s new CEO Dorian Gonsalves (pictured below) says recent media reports that rent rises are out of control across the UK are at odds with the experience within his 300+ branch network.

Recent commentary by mainstream media on research from the GMB union and the recent Homelet rental index suggested that rents were rising fast and that many renters – particularly in London – are paying more than half of their salary in rent.

Gonsalves say prices are instead rising by an average of 2.75%, increases which he says are mirrored by other indexes and the government’s Office of National Statistics (ONS).

“Sensationalist media reports that rents are spiralling out of control across the country are at odds with what our offices are reporting, and that other letting agents across the country are currently experiencing,” he says.

“However, feedback from our franchisees confirmed that less properties were seeing static rents than in the previous quarter, and more offices experienced rent rises of £25 and £50 per month.”

Gonsalves says the Belvoir Rental Index for the second quarter of the year shows that families and professionals are the most likely to experience rent rises, although he says demand from tenants is also rising as government provision for social renters is cut and that, therefore, rent prices were likely to follow.

“Two to three bed properties remain in demand and are in short supply,” he says.

Landlords selling

“Although we are not currently seeing a huge exit of landlords from the market it is apparent that landlords are beginning to sell their properties.

“Almost 70% of Belvoir agents believe the government has under-estimated how many landlords will be affected by the changes to mortgage interest relief.

“Most agents expect investor enquiries to remain the same, or to fall, especially for room rents. Average void periods for one week remain the same, although there has been an increase in two-week voids.

Gonsalves, who recently took over as CEO at Belvoir after founder Michael Goddard stepped down to become Executive Chairman, says tenants are staying in their properties for longer and that over 80% of Belvoir branches carried one or zero evictions during the second quarter of the year.

“This is a good indication of how well our referencing and property management systems are performing and highlights the importance of tenants choosing a reputable agent when renting their home,” he says.