Reluctant landlords fall - Mortgages - News - Moneyfacts


Reluctant landlords fall

Reluctant landlords fall

Category: Mortgages

Updated: 01/09/2009
First Published: 01/09/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The number of reluctant landlords appears to be falling as confidence in the property market continues to show signs of a meaningful upturn.

Reluctant landlords have flooded the market but the Association of Residential Letting Agents (ARLA) has reported that 80 per cent of its members' offices have seen property rented out rather than sold.

The trend was adjudged to be one of the key factors in the property market downturn, but figures show that it is not as widespread a problem as it was last year.

The figure, although still high, represents a clear fall from the peak of 95 per cent in November 2008 when confidence and house prices dipped sharply.

"Many sellers were left with little option other than to rent their properties out earlier in the year but this trend seems to be slowly diminishing," commented Ian Potter, operations manager at ARLA.

"There are, however, still a high number of these reluctant landlords in the market who need to understand the obligation to their tenants."

The markets in the South East and London are showing signs of particular improvement, with 78 per cent and 72.5 per cent respectively of agents' offices in these areas reporting a decrease in the number of reluctant landlords.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.