Latest lettings findings from franchise agency Belvoir shows that in the third quarter of this year average rents were just £3 a month more than in the same period of 2016.
“The average lowest rents in Q3 were £595 in the north west and £621 in the north east, and the highest rents in Q3 were £1,052 in the south east and £1,436 in London” explains Belvoir chief executive Dorian Gonsalves.
“Twenty five out of 50 counties showed rental decreases in Q3. This includes those in Berkshire, Surrey, Hertfordshire, West Sussex and London” he adds.
Some 80 per cent of Belvoir’s offices reported that the majority of rents for flats remained static and any rises that were seen were small - up to £25 a month. There was a similar picture with houses, and 53 per cent of Belvoir offices reported that rents were unchanged.
The majority are predicting that there will be very little change in rents in Q4, especially for flats and houses.
When we looked at tenant demand for Q3 compared to Q2 it was noted that demand for flats was static to falling, and although demand for houses remains strong, more offices are reporting a decrease in demand. This could be linked to the fact that the majority of tenants are staying in their properties for longer with 42 per cent opting to remain for 13 to 18 months and over 30 per cent staying for 19 to 24 months, with 14 per cent choosing to stay for over two years” notes Gonsalves.
An increased number of offices reported that some landlords were selling up, which in turn is reducing supply.