BUSINESS leaders in Hampshire are urged to act carefully in order to avoid landlords overinflating rental prices over the coming years.

With confidence returning to the property market, landlords are looking to increase their rents but one property adviser is urging businesses to be wary.

It comes after Hedge End furniture store DFS managed to save more than £1.2m over the next five years when BNP Paribas Real Estate negotiated no increase in rent on its behalf.

The arrival of fashion store Next had led the landlord to understand the attractiveness of the location had improved.

But BNP argued that despite the new addition to the area rental values had still not returned to levels before the start of the financial crisis in 2007.

Niall Cassidy, of BNP Paribas Real Estate said: “The last five years have been quite benign for occupiers, with very little rental growth.

“However, as confidence is returning to the property market, landlords are increasingly pursuing rent increases and occupiers need to be aware of the risks surrounding rent reviews in the current climate and should take the right action to ensure they do not get caught out.

“This is a prime example of how perceptions of market conditions are not always accurate and underlines why it is important that occupiers take the time to investigate the market fully.”