Rise in reluctant landlords as homes are unsold
Monday, 9 January 2012 11:48 AM
The number of reluctant landlords is rising as owners find they cannot sell their homes, according to research by the Association of Residential Letting Agents (ARLA).
Some 47 per cent of ARLA members reported a rise in the number of "unplanned" lettings in the third quarter of 2011 as owners reported that they could not sell or were holding out for a higher price. The figure is up from 40 per cent at the start of the year.
The trend was most noticeable in the North East, with 67 per cent of agents reporting a rise in property coming on to the lettings market because it cannot be sold, and in the North West, Scotland, Wales and Northern Ireland, all with more than 60 per cent. The proportion was lowest in Central London with just 17 per cent.
ARLA said the trend meant many homeowners will be becoming a landlord for the first time, many of them reluctantly.
Tim Hyatt, ARLA president said: "Letting a property is an excellent way of generating consistent income from your property, if the correct approach is adopted by prospective landlords.
"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."
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