Reluctant landlords urged to hold steady

With many ‘reluctant landlords’ now looking to return to the sales market as house prices strengthen, those able to continue letting can now benefit from a firming rental market, says email4property.co.uk, the UK’s largest online network of estate agents.

Since the concept of the reluctant landlord became widely recognised for the first time in the recent downturn during summer 2008, email4property.co.uk has seen the number of people looking to rent their properties rise by over 50 per cent. As this number starts to recede, with many now hoping to sell, the fierce competition among landlords is also decreasing.

With interest rates still at historic lows and set to remain so for the foreseeable future, this has created a window of opportunity for the new breed of landlords to build on their experience and benefit from improving rents, as competition intensifies among tenants for the best remaining property.

Steven Lees, Head of Marketing for email4property.co.uk, comments:

“Conditions have now finally tipped in favour of the reluctant landlords after a long period of intense competition, during which tenants were able to significantly bargain down rents. Until recently it was hard for owners to recoup a decent return on their property.

“With many reluctant landlords now looking for their route back into the sales market, availability has decreased, allowing landlords to be more bullish on rents and conditions of tenancy. Those looking to remain in the lettings market, and even those entering now - perhaps having picked up a bargain property, will find a far more favourable environment than any time over the past year.

“Continuing to let the property may well be the best option for many in the current market. In spite of improving house prices, the continued lack of mortgage finance remains a key obstacle for a return to any level of robust sales, and those hoping to sell may still face disappointment.”

In addition to decreasing stock levels, agents are also reporting growing demand from tenants, with the trend for business relocations returning to play a major role in many parts of the country following a long absence from the market.

Bill Rockett, of Rockett Home Rentals in Staffordshire, adds:

“Earlier this year there was an extraordinary amount of stock available on the lettings market, and rents suffered as tenants seized the opportunity to secure a bargain. However, we are now experiencing a turnaround, with decreasing stock combining with renewed demand from tenants to push rents upwards. Many experienced landlords are now looking to expand their lettings portfolios in order to capitalise on the current strength of the market.”

For tips on renting your property and for a full list of specialist letting agents in your area visit the ‘Rent Out Your Property’ option on email4property.co.uk.