Politicians ‘must take note of two lettings markets’

As politicians continue to toy with interference in the rental sector, lettings chain Belvoir has called for them to recognise what it says are “polar” differences between the London market and the rest of the UK.

In particular, Labour has said that if it wins next year’s general election, it will introduce longer tenancies, ban letting agents’ fees to tenants and bring in rent controls.

But Dorian Gonsalves, director of commercial and franchising at Belvoir, said that in many regions, rents are still below 2008 levels.

He said: “Although rents in Yorkshire are now recovering to pre-recession levels, only rents in the south-east, south-west, west midlands and London are exceeding the heights achieved in 2008 and it is the London market that has seen the biggest increase.

“In recent months there have been reports of some private London landlords doubling rents, but Belvoir’s analysis of advertised rents in regions across the rest of the UK reveal that the majority of landlords have seen no rental increases in recent years.

“A total of 14 counties, which include Lincolnshire, Norfolk and Dorset, have yet to recover to 2008 levels, which is good news for tenants as it means the tough situation of below inflation wage rises has been reflected in their rents.

“Seeking to introduce blanket rental increase caps across the entire UK, combined with other proposed policies such as the banning of tenancy fees and introducing statutory long-term tenancy agreements, is likely to have a huge negative impact on the majority of landlords, who may well be forced to sell up.

“This will then further reduce the stock of good-quality rental properties available to tenants in less wealthy parts of the country where the lettings market is of such vital importance.”

* This morning, Sequence said that UK rents had increased 11% over the last year, with demand up 14% and supply down 7%. It said that in London, tenant demand has increased at more than 11 times the rate of supply.

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