UK homeowners having to rent out their homes and becoming landords, is on the rise

Landlord Expert
By Landlord Expert January 9, 2012 15:11

During the third quarter of 2011, nearly half (47 per cent) of ARLA member agents surveyed reported a rise in the number of 'unplanned' lettings as homeowners turn to the private rented sector because they are unable to sell their property, or holding off until a higher price is achievable. This figure has risen from 40 per cent at the beginning of the year.

According to ARLA, this trend was particularly noticeable in the North East and North West, where higher proportions of respondents reporting an increase in rental property coming onto the market because it cannot be sold (67 per cent and 62 per cent respectively).

More than 60 per cent of members in Scotland, Wales and Northern Ireland also noted an increase. In contrast, the figure was lowest in Central London (17 per cent).

According to ARLA, this means some homeowners will be turning landlord for the first time, many reluctantly.

"Letting a property is an excellent way of generating consistent income from your property, if the correct approach is adopted by prospective landlords," said ARLA President Tim Hyatt.

"However, lettings is an unregulated industry and there can be pitfalls for both landlord and tenant, including loss of monies. While we are, of course, happy to see an increase in the number of landlords, it is vital that every landlord - reluctant or keen - seeks expert advice before embarking on a rental arrangement.

"In particular, we would advise anyone considering renting or letting a property, to consult a licensed ARLA member. Licensed agents have to adhere to a strict code of conduct, and must have a number of consumer protection mechanisms in place, meaning that if things do go wrong, there is a way to seek redress."

ARLA agents report that the most likely types of home to be brought to market by a reluctant landlord are detached and semi-detached houses, while the least likely are studio flats.

Landlord Expert
By Landlord Expert January 9, 2012 15:11

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