NEW RESEARCH has shown that letting agents in parts of the country are giving different advice about rents, depending on whether the inquiry is from a potential landlord or tenant.

In some towns and cities, letting agents are overstating to landlords rental returns on investment properties by up to 25%. In others, they are understating rents – possibly concerned by lack of tenants and over-supply of properties.

The research was carried out by Landlord Mortgages, a specialist buy-to-let broker, which sent researchers into letting offices, posing as both tenants and potential property investors. Both inquired about how much much a two-bedroom flat in specific developments could be rented for.

Agents in London overstated rentals, while letting agents in Manchester and Liverpool under-quoted potential rental returns by 25% and 15% respectively.

However, Sheffield appeared to boast the most honest agents, who quoted the same rents to both tenant and investor.

The worst example was in London, where a letting agent quoted a monthly rent of £1,733 to a prospective tenant but £2,166 to a prospective landlord on exactly the same apartment. In Birmingham, a landlord was told to expect monthly rental of £900, while a tenant was advised that rent would be £800.

But in Liverpool, a landlord was quoted £550 monthly income on an apartment while the prospective tenant was advised that rent would be £650.

Lee Grandin, managing director of Landlord Mortgages, said: “These results show that it is crucially important for landlords to thoroughly research prospective properties before making any purchasing decisions.

“By relying purely on the advice of letting agents, some investors may be facing a serious rental shortfall, or even be put off a perfectly good property by an overly pessimistic assessment.”