Average rents shows signs of recovery

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by Gill Montia

Figures from Belvoir show that average rents across the firm’s UK offices are similar to one year ago.

The lettings specialist has over 140 offices throughout the UK, including Scotland, Wales and Ireland and chief executive, Mike Goddard, explains that statistics for March 2008 show the average national rent at £690.30.

He adds that over the next 12 months there was a degree of fluctuation followed by a “gentle decline” in rental income.

Reasons for this include “the collapse of the residential sales market, an influx of properties to the market by reluctant landlords and also an uncertain financial climate which slowed the entire economy”.

The latter caused many migrant workers who were renting to return to their home countries.

However, according to the most recent Belvoir Lettings Rental Index, average national rents in March 2009 are “almost back to exactly the same level as they were one year ago”.

Mr Goddard believes the market is beginning to settle, with demand driven up the number of people opting to rent rather than buy.

Earlier this month, Belvoir alerted landlords to the benefits of keeping a close eye on their properties to avoid tenants setting up illegal operations such as cannabis farms and indoor chicken farms.

The firm advises that tenants should not feel threatened by a landlord’s interest but rather understand the benefits of close relationship with their landlord or property management company.

It should also be noted that insurance companies may not pay out if a property has been damaged through misuse and a landlord cannot prove that he or she has been diligent.