News: Reluctant landlords flood rental market

Fri, 17 Apr 09

Figures released recently by the Association for Residential Lettings (ARLA) confirm that growing numbers of property owners who have not managed to sell are turning to the lettings market in desperation.

94 per cent of lettings agents, who responded to the ARLA membersí survey, of the private agentsí sector said that there was an increase in property released on to the lettings market.

In top London locations, 92.2 per cent of landlords reported increased numbers of rented properties for the first three months of 2009.

Operations Manager of ARLA, Ian Potter said, 'Sellers have been left with little option but to resort to renting out their property. These reluctant landlords need to understand the obligations of a landlord to their tenants, and the need to choose a regulated and qualified letting agent.'

Mr Potter added that there 'is now a glut of unsellable houses coming on to the market for rent'. It is the task of the Government, he said, to free up the sales market and 'to regulate a lettings market that is becoming increasingly competitive'.

He stressed the overriding importance for new landlords to seek out experienced lettings agents. The agents should be qualified and abide by a code of practice so that funds held by them on behalf of their clients are safeguarded under client money protection schemes. 

See also: Home Asking Price Index

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