Sellers reluctantly turn to rent
The lettings market is undergoing an increase in inexperienced landlords, as sellers are forced to rent their property while the housing slump continues.
Cluttons, the property consultants, has revealed that the market has seen an influx of landlords who are unrealistic about rental expectations and uneducated about tenants' rights - expecting rental income to cover all their costs from day one.
These 'reluctant' landlords are also often unprepared for administrative charges and the drip-feed costs of keeping a rental property to a high standard.
Lynn Hilton, partner at Cluttons, is currently writing a guide for these amateur landlords in an effort to lower their expectations.
She said: "Many of our new landlords are not entering the lettings market by choice and they have a great deal to learn about the business.
"A number of them are missing out on opportunities to let their property by refusing to budge at all on the asking rent, instead settling for void periods, which every professional landlord knows is seriously detrimental to yields."
Meanwhile, it was announced earlier this week that the value of rental properties in the UK has, for the first time, outstripped the value of commercial property.
Mortgages News posted on 16/07/2008 15:18:05
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