Letting agents may have noted a rise in the number of ‘accidental landlords’ that have entered the rental sector in recent months, as the recession is said to have driven a change in the buy-to-let market.
Managing director of Total Landlord Insurance Eddie Hooker claimed…
“Financial issues such as poor pension returns have led to an increase in interest in property rental”.
Mr Hooker noted…
“There are many reasons for a rise in the number of people becoming landlords including opportunism … being able to get a mortgage and put a deposit down on a buy-to-let, while good returns are an attractive prospect”.
It was suggested that many parents are becoming involved in the rental sector as they purchase university accommodation for their children and then continue to rent them out after they graduate.
Mr Hooker’s comments follow warnings from Templeton LPA about the recent rise in the number of tenancy agreements in severe arrears, with figures increasing from 2.4 per cent to 2.6 per cent in the second quarter of 2012.
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