Belvoir Rental Index

Summary

Lettings agency Belvoir is among the most recent recruits to the rental price index arena. In December 2012 it launched a five-year rental index report looking at long term rental market trends and in January 2013 introduced a monthly index. The information in the Belvoir Rental Index is based on advertised rental prices of around 2,000 properties across the 130 of its 165 UK wide offices that have been opened for more than five years.

Data

Information features average monthly rental prices, with monthly, annual and five year changes included. An England, Wales and Scotland breakdown, as well as movements in prices by region and county, are also included.

Method

The monthly average rental price data is based on a three-month mean average. For example if the average rent in May is £500, for June is £525 and for July is £515, the average rent for July is recorded as £513 (£1,540/3). This adjustment helps to take into account short-term rental market supply and demand fluctuations that may push rents up for a limited time, such as an influx of new build properties coming onto the rental market.

Advantages

  • By including data from 2008 the Belvoir Rental Index offers a useful long-term guide to rental price fluctuations as well as changes on a monthly and annual basis.
  • The use of a three-month average to calculate the monthly rental price average helps take into account local fluctuations in supply and demand of rental housing stock.
  • Monthly release offers an up to date look at the rental property market.
  • Information is clearly presented in a way that is accessible to both buy to let landlords and tenants.

Disadvantages

  • With just 2,000 properties the sample size is too small to offer anything other than a snapshot of local rents.
  • Despite having 165 offices nationwide the bulk of its properties are in England. Of properties to rent on its website in March 2020 there were around 200 in Scotland, 100 in Wales and a similar number in Northern Ireland
  • The use of advertised rental prices hinders the Belvoir Rental Index's accuracy, as these can be markedly different from agreed prices.

Verdict

The use of a three-monthly average to calculate average monthly rental prices is a welcome addition to the range of rental indices as it helps take into account local rental market supply and demand changes. But with such a small sample size, its use of advertised not actual prices and with the bulk of its properties located in England this index only offers a basic snap shot of average rental prices compared to the larger indices such as the 500,000 properties featured in the Valuation Office Agency Private Rental Market Statistics.

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