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11th January 2012

Rise in reluctant landlords

Lettings agents could be seeing increased demand for their property management services as arising number of homeowners opt to rent out their property as an alternative to selling. According to figures from the Association of Residential Lettings Agents (ARLA), there has been an increase in the number of 'reluctant landlords' in many parts of the country.

These are people who have decided to rent out their property as they have been unable to find a buyer for it, or cannot obtain a decent price in the current housing market. In a survey of member agencies, ARLA found nearly half (47 per cent) saw a rise in the number of 'unplanned' lettings during the third quarter of 2011, up from 40 per cent at the beginning of the year. The trend is more pronounced in certain regions, with 67 per cent and 62 per cent of agents inthe North East and North West of England reporting an increase respectively, while more than 60 per cent of members in Scotland, Wales and Northern Ireland also noted a rise.

With sales transactions currently at historically low levels in the owner-occupier market, many people are struggling to sell their property at a good price. But with rents soaring, the lettings market can be a good way to generate an income while waiting for things to improve.

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

However, most of those thinking about becoming a landlord may find that they require the expert propertymanagement services provided by residential lettings agents.

"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," said Mr. Hyatt.