Reluctant landlords return to rental market, says ARLA
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The reluctant landlord has returned to the rental market, according to the Association of Residential Letting Agents.
ARLA’s research revealed that 34% of member offices In Q3 2010 have seen an increase in the number of rental properties coming onto market because they can’t be sold. This figure was an increase from 19% in Q2 of this year.
There was variation across the UK in the number of agents reporting this trend, with 58% of agents in the North East of England reporting an increase in reluctant landlords, compared to 15% in central London.
The number of reluctant landlords peaked during the recession when at the beginning of 2009, some 94% of agents surveyed reported an increase of property coming onto the rental market because it could not be sold.
Ian Potter, operations manager at ARLA, says: “The rise of the reluctant landlord seems to reflect wider market uncertainty and instability. There is a dearth in available property either to rent or buy, yet people are holding back from selling, perhaps strategically, to secure the best price; or more likely because they simply can’t find a suitable buyer.
“While we welcome new landlords to the market, this trend is not without risks. Letting a property can be full of potential hazards, especially for inexperienced landlords – from material issues, such as a tenant mistreating a property, to financial problems, such as landlord inability to meet mortgage payments. A qualified, licensed agent can help guide both landlord and tenant through the process, to ensure neither party is left out of pocket.”
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Readers' comments (3)
steves1 | 29 Oct 2010 4:46 pm
This will be good for the letting market as it is booming at the moment but with a lack of properties. Providing the Landlord charges a fair going rate as rent & he uses the services of a Good Agent he should be find. The agent will Reference all tenants, provide Tenancy Agreement and set up standing Order for rent direct to the landlord. The agent will inspect every 3 months and report findings and address any problems. This is the right & only way to operate. professionaly.
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Anonymous | 1 Nov 2010 9:51 am
Right and only way?. Trample all over tenant's right to quiet enjoyment by inspecting every three months? Credit checking tenants but not landlords? Do me a favour, Steves1.
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Anonymous | 1 Nov 2010 10:42 am
Tenant's right? Clearly someone without any experience in the lettings market. Tenants have pretty much all the legal rights while the landlord has none, the law very one sided. Yes there are bad landlords, which is why regluation needs enforcing, a good agent will ensure a tenant cares for the property and like any good person would do and that a landlord is fit to service their tenants needs! There are many good professional landlords who know what they are doing and in turn have happy long term tenants!
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