Reduction in reluctant landlords

The trend for reluctant landlords appears to be coming to an end as members of the Association of Residential Letting Agents (ARLA) report a drop in rental properties coming onto the market because they cannot be sold.

The ‘reluctant landlord' has been a key symptom of the housing market downturn, as homeowners desperate to sell their property turned to the rental market to pay their mortgages.

ARLA's research shows that 80 per cent of its members' offices have seen property being rented out rather than sold. This figure has dropped from a high of 95 per cent of offices in November 2008 when consumer confidence and house prices dipped.

Ian Potter, Operations Manager of ARLA, said: "Many sellers were left with little option other than to rent their properties out earlier in the year but this trend seems to be slowly diminishing.

"There are, however, still a huge number of these reluctant landlords in the market who need to understand the obligations of a landlord to their tenants and the need importance of choosing a regulated and qualified letting agent."

The markets for London and the South East are showing particular signs for optimism with 72.5 and 78 per cent of offices citing a decrease in reluctant landlords -both down from highs of 92 per cent last year.

The number of family houses being rented out has decreased from 72.5 per cent in November of last year to only 66 per cent, but rentals for flats and studios have increased in the same timeframe.