Reluctant Landlords Return

Reluctant landlords have made a return to the rental market according to the Association of Residential Letting Agents (ARLA).

The ‘reluctant landlord’ emerged during the recession as homeowners were forced to let their property as they could not sell it.

According to ARLA Q3 2010 saw an increase in the number of offices reporting an increase in the number of rental properties coming onto market because they can’t be sold.

Interestingly there was wide variation in the trend across different parts of the Uk. For example 58% of agents in the North East of England reported an increase in reluctant landlords, whereas only 15% did so in central London.

The number of reluctant landlords peaked during the recession at the beginning of 2009 when 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, said: “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.”

Inexperienced landlords can face what appear to be daunting hazards as they enter the rental market – from material issues, such as a tenant mistreating a property, to financial problems, such as landlord inability to meet mortgage payments. There is the need to carefully consider buying landlords insurance too.

A qualified, licensed agent can help guide both landlord and tenant through the process, to ensure neither party is left out of pocket.