The rise of the "limbo-landlord"

Landlord Expert
By Landlord Expert February 22, 2011 10:02

The shortage of private rental stock that has buoyed rents in recent months could ease if Rightmove’s outlook for 2011 proves accurate.

Yesterday the property portal reported that sellers coming to market increased prices 3.1% in February, compared with a month earlier.

However, mortgage lenders are shunning the average buyer and focusing on “bargain-hunting bottom-feeders” and the “low-loan to value elite” meaning that Rightmove is predicting that house prices and transaction volumes will remain flat in 2011.

In fact, the only rise the firm expects is in “desperate” housing solutions, including “limbo-landlords”.

Previously known as “reluctant landlords”, property owners unable or unwilling to sell their homes first impacted the private rental sector in 2009, and any surge in the “limbo” variety would come just as the availability of landlord finance is showing signs of improvement.

According to the latest LSL Buy-to-let Index, a growing number of professional landlords are now able to broaden their portfolios, with international investors also playing their part in the UK’s private rental sector, attracted by low property prices.

Average rent could therefore see further declines, following January’s second consecutive monthly fall.

Meanwhile, tenant arrears also fell in January, but remained high with 11% of all UK rent in arrears.

Landlord Expert
By Landlord Expert February 22, 2011 10:02

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