08 April 2009
Research Reveals Britain’s “Reluctant Landlords”
Frustrated sellers are turning to the lettings market creating a glut of inexperienced landlords, according to the Association of Residential Lettings Agents (ARLA).
Frustrated sellers are turning to the lettings market creating a glut of inexperienced landlords, according to the Association of Residential Lettings Agents (ARLA).
94 per cent of lettings agent respondents to the ARLA Members’ Survey of the Private Rented Sector * reported an increase of property coming onto the rental market because it could not be sold. ARLA’s members believe that these figures confirm a trend that has been much discussed but thus far unproven other than through anecdotal evidence.
The trend was reported countrywide with even 92.2 per cent of landlords in “prime” Central London locations reporting an upsurge in rentals coming onto the market for January, February and March.
Ian Potter, Operations Manager of ARLA, said: “Sellers have been left with little option but to resort to renting out their property. These reluctant landlords need to understand the obligations of a landlord to their tenants, and the need to choose a regulated and qualified letting agent.”
Semi-detached houses appear to be the most common type of property succumbing to reluctant letting: UK-wide, 68 per cent of the agents surveyed saw an increase in the supply of these properties onto the rental market. This was followed by detached houses (67 per cent), terraced houses (52 per cent), with flats (29 per cent) and studios (11 per cent).
Ian Potter explained: “These figures confirm the trends we have been hearing from ARLA’s members that sellers looking to downsize are turning to the lettings market after being unable to sell.
“Detached and semi-detached houses are always traditionally harder to rent, but in this market there is now a glut of un-sellable properties coming onto the market. It is another sad indication of the work that the Government must take to free up the sales market and the need to regulate a lettings market that is becoming increasingly competitive.
“For those landlords new to renting, it’s crucial that they look for a local lettings agent who is both regulated and abides by a code of practice. “The agent will also have received the necessary training and qualifications, and consumers can be confident that any funds being held by them on your behalf are protected under client money protection schemes.”
According to ARLA’s members, the increase in new landlords has led to tenants taking extra measures to gain assurances on the security of the property.
According to Lucy Morton, managing partner and head of lettings at W A Ellis, and president-elect of ARLA, there is a growing trend for tenants to be asking for references on landlords. She explained: "Tenants are increasingly nervous about the security of landlords, we are also seeing tenants asking for assurances that the landlord will be able to cover his mortgage payments throughout their Tenancy."
