United Kingdom homeowners who have properties that they are unable to sell because of the current climate, are being encouraged to become landlords until the market picks up.
Some property experts say that the previous increase in ‘accidental landlords’ was now on the decline, and they also say that the sales market is still slow, and there have been very few enquiries from potential purchasers throughout what is normally a busy spring and early summer months. The prediction for the summer and autumn of this year is that it is very unlikely that a significant improvement will be seen.
Homeowners who are struggling to sell are now deciding to rent, and in doing so are continuing the new breed of the “accidental landlord”. But while this will give a welcome increase in homes to rent, a lot of the new landlords are blissfully unaware of all regulations involved. They do not know, for instance, that there are more than 50 Acts of Parliament and another 70 sets of regulations governing the private rented sector and if they are not complied with, the landlords risk large fines. The onus is on the landlord whether they are accidental or not, to make sure they comply with all regulations and they will be held liable if something goes wrong, even when they employ the services of a letting/managing agent. It is no good claiming ignorance of legislation as a defence. Even having good buy to let insurance may be of no help.
Leaders (who carried out the research) Managing Director Paul Weller said: “Demand for rental property is stronger than ever and good quality properties are being snapped up by tenants as soon as they become available. Whilst the sales market is suffering, the rental market is buoyant because more people are choosing to rent for a number of reasons. People are still uncertain about the economy and are either unable or unwilling to commit to buying a property. Renting is a more affordable and flexible option as it does not require a huge deposit and it allows people to move on easily for work opportunities. We are seeing exceptionally strong demand for all types of properties in the areas we cover, from studio flats to large family homes, with many tenants choosing to extend their tenancies indefinitely. Vendors who were unable to sell could let for six months – or longer if it suits – until the sales market improved and in the meantime get a useful income from the rent”.
Leaders are advising any property owners that if this option appeals to them they should act as soon as possible as rental demand is high at the moment whilst property stocks are much lower.