Recession reality leads to 'reluctant landlords'

Following record falls in property values, research from the professional advice website, Unbiased.co.uk reveals that nearly 5 million homeowners have already considered becoming ‘reluctant landlords'. A third of this group are considering renting their property because they cannot sell it without making a loss in current market conditions.

The research also reveals younger homeowners are hardest hit by this issue, with a quarter of cash strapped 18-34 year old homeowners considering renting out their home or taking in a lodger, while nearly 400,000 in the same age group already have a lodger. Londoners are most inclined to look for additional rental income, with 190,000 taking in a tenant to make ends meet.

The research goes on to highlight how the majority of those considering the move to becoming a landlord have felt the brunt of the rocky property market. 280,000 homeowners have considered renting because they want to sell their home but can't find a buyer and a further 200,000 need the rental income to enable them to buy elsewhere. In support of this, the National Landlords Association calculates that as many as 43 per cent of landlords have come into the residential letting market by chance.

Richard Winder, spokesperson for the Unbiased.co.uk ‘find a mortgage adviser' service, comments: "The boom years created a wave of have-a-go landlords attracted by the promise of rising property prices and cheap buy to let finance. Now we're seeing a new wave who may end up reluctant landlords because they need more money and don't want to sell up in the current market. Before taking the plunge into what is a serious financial and social commitment, we would homeowners in this position to speak to a whole of market mortgage adviser to see whether they could cut their existing repayments, as well as talking through the opportunities and potential pitfalls of becoming a landlord."