The chief executive of franchise giant Belvoir says government interference in the lettings sector will be to blame for higher rent in the future.
“As 2018 progresses there’s no doubt that landlords and tenants will find themselves shouldered with an extra burden of cost due to continued government interference in the rental market, which includes the implementation of punitive tax changes” claims Dorian Gonsalves.
“As more landlords see their profits eroded, and more legislation is in the pipeline, more landlords are likely to exit the market. We are still seeing new investment in the buy to let market, but the number of properties being bought has decreased” he adds.
On the basis of the company’s rental statistics for the first quarter of this year - the latest data available - Belvoir is predicting static to rising rents in flats for the rest of the year, with further rental increases anticipated for houses and particularly larger family homes for the executive market, which remain in short supply. Room rents are expected to remain static.
“Tenants are continuing to stay in their properties for longer,” reports Gonsalves.
“A third of tenants naturally prefer a tenancy of around 13 to 18 months, but 40 per cent are staying for 19 to 24 months, which is the highest percentage we’ve seen in the last two years.”
Belvoir describes itself as the largest property franchise network on the high street with over 300 offices nationwide.