Insurance News Archive

Reluctant landlords 'pose a risk'

The UK rental market could be negatively affected by the emergence a type of commercial property owner known as the 'reluctant landlord', it has been claimed.

According to the National Landlords Association (NLA), a growth in the number of instructions to let indicates that an increasing number of people are letting their properties in order to avoid selling them.

Simon Gordon, head of communications at the NLA, stated that there is a major risk that inexperienced landlords are not fully up-to-speed with their responsibilities, which can lead to problems.

"If landlords are not properly prepared, the potential long-term wait for prices to come back up may prove to be a Pandora's Box for the private-rented sector."

Research by the Royal Institute of Chartered Surveyors (Rics) has shown that instructions to let by new landlords have increased by the fastest rate since records began in the third quarter of 2008.

The Rics survey also showed that tenant lettings are on the increase, with 37 per cent of chartered surveyors reporting a rise in lettings, compared to 30 per cent in the same period last year.

21 Nov 2008