Increased competition in the lettings market has fuelled price wars amongst agents, but according to Belvoir regional reps, landlords are returning to specialist agents to help them capitalise on investment opportunities.
“It all goes back to our core values of professionalism, specialism and customer service.”
London & South East
Craig Walker, owner of Belvoir Camberley says: “We’ve have been very busy and had a good start to the year, but the market is very competitive. New agents are popping up all over the place thinking that lettings is an easy industry and in the short term they can have an effect because of the crazy rates they offer, but they don’t last as they can’t deliver the services that people are looking for.
“Every agent is chasing properties, but we are very pro-active with our marketing. Other Belvoir agents in London and the South East also report that business is picking up. I think it all goes back to our core values of professionalism, specialism and customer service. A good business like Belvoir that delivers a quality product and service finds that people come back to them.”
West Midlands
Martyn Sergent from Belvoir Stratford-upon-Avon, is the Belvoir regional rep for the West Midlands and says: “My office had a brilliant January, although February was quiet, probably because of the effect of people having to pay tax bills, credit card bills arriving and the effects of a long, gloomy January when Christmas caught up with them. However, as soon as March arrived, the phones started ringing and we had another really good month. According to other Belvoir offices in the region everyone is really busy again now.”
North
Regional rep for the North, Dave Roberts, Belvoir Wigan says; “Business is very good. Our office achieved a personal best in January and March, which was great and we have recently had an influx of landlords with new instructions.
“There are a lot of properties available for landlords to buy at a good price, particularly ones that have been in receivership. In addition we still have plenty of tenants looking for properties and there has been a slight increase in rents.”
South
Belvoir regional rep for the South, Michael Betteridge, of BelvoirWestbourne & Poole says: “The first quarter was incredibly busy, and my office broke personal records. We still have a glut of tenants and as soon as a property comes onto our books I can let it out. Interestingly, we are now starting to get business from landlords who were previously renting through an estate agency.
“I recently let a landlord’s property to new tenants for £75 more per month than the previous agent, so I think landlords are coming back to specialist agents now. I would say that 20% of the properties on our books have had an increase in rents. Some landlords are just happy to have tenants in and other realise there is a glut of tenants and are keen to raise rents, but of course everything else has gone up too and so there is resistance.”
Scotland
Belvoir’s regional rep for Scotland, Nick Horan from Belvoir Dundee, says: “The first quarter has shown a marked improvement on the last quarter of 2010 with significant increase in the number of properties let and general activity in the lettings market. Rents are remaining steady, but there does appear to be an increase in landlord interest in the buy to let market, with more landlords telephoning to enquire about properties.”
East Midlands
Regional rep for the East Midlands, Nigel Parry from Belvoir Nottingham Central says: “In rental terms Nottingham is a very cyclical city, and there is always a massive surge in demand from May to August, which drops off in the winter months. We then have a very busy February and a quiet April and that is the case again this year.
“Contrary to media reports in terms of rental properties going up in value some are slightly but we are also finding that for every one that comes on to the market there is another one vacating. People seem to be moving in with each other to save money and although we are still getting the same influx of people we are also seeing that more people are moving on.
“Last year I predicted a second wave of repossessions, and this is proving to be the case. I think there is a huge opportunity for large deposit investors in this region at present.”
Northern Ireland
Regional rep for Northern Ireland, Andrew Jack of Belvoir Belfast East and South says: “The market here is reasonably buoyant. Our property sales market is depressed, more so than in other parts of the UK and demand for good rental properties is high.
“The tenant profile has altered in the past 18 months, and we get people who would previously have been first time buyers and are fussier about what they want to rent. There has been no significant rise in rents but I would say they are holding up pretty well. There are some fantastic investment opportunities available for landlords, with yields of around 7-8%, compared to just 2-3% a couple of years ago, so this is a good time for landlords to add to their portfolio.”
Belvoir MD Dorian Gonsalves says: “ According to feedback from local Belvoir offices, more and more new landlords are being attracted to the lettings sector as a result of increasing rents, increased demand and subsequent higher yields than in previous years. I would advise landlords who are considering expanding their portfolio to obtain free expert advice from their local Belvoir agent prior to committing to an investment property.”
