Letting agents have reported a rise in “reluctant landlords” entering the rental market, due to individuals struggling to sell their properties.
The latest research from the Association of Residential Lettings Agents (Arla) revealed during the third quarter nearly 47 per cent of the body’s members noted a rise in the number of unplanned rentals.
This was up from 40 per cent at the beginning of the year, with this trend most noticeable in the north-east and north-west.
Arla president Tim Hyatt said…
“While we are … happy to see an increase in the number of landlords, it is vital that every landlord … seeks expert advice before embarking on a rental arrangement.”
He added that…
“renting a property is a great way to generate consistent income, but warned individuals to be wary of unregulated agents.”
Chairman of Arla Alan Ward recently claimed…
“Many “reluctant landlords” will be likely to put their homes up for sale when property prices begin to pick up.”
Let us know your thoughts…
The vast majority of reluctant landlords are in breach of their mortgage conditions and are in breach of other laws; gas etc and also of non- declaration of rent payments.
Also they are invalidating their buildings insurance.
They would need to change to landlord type insurance.
It could be that in the event of total loss the insurance company tries to avoid paying out as the mortgage company was unaware of the property being let out.
Therefore big risks to a homeowner.
If the mortgage isn’t paid then the mortgage company becomes aware of what has been going on.
I reckon it would take about 1 year to rebuild a property in the event of total loss
Who would pay the rent to enable the mortgage to be paid.
A RGI policy would be of no use in these circumstances.
Yes they are the worse case scenanario; but homeowners need to be aware of the risks.