The number of homes coming onto the rental market because they cannot be sold is rising in some parts of the country, causing a rise in the number of ‘reluctant landlords, a trade body has claimed.
The Association of Residential Lettings Agents (ARLA) says its latest research suggests that some homeowners will be turning landlord for the first time, many reluctantly.
During the third quarter of 2011, 47% of ARLA member agents surveyed reported a rise in the number of ‘unplanned’ lettings as homeowners turn to the PRS because they are unable to sell their property, or holding off until a higher price is achievable. This figure has risen from 40% at the beginning of the year.
ARLA said that in England, this trend was noticeable in the North East and North West in particular, where higher proportions of respondents reporting an increase in rental property coming onto the market because it cannot be sold (67% and 62% respectively). More than 60% of members in Scotland, Wales and Northern Ireland also noted an increase. In contrast, the figure was lowest in Central London (17%).
Tim Hyatt, ARLA’s president, said: “Letting a property is an excellent way of generating consistent income from your property