NLA feels new landlords are posing risk to British rental market

Posted under General by Alan

The National Landlords’ Association’s research revealed that there is a breed of landlords who are letting out their personal properties in order to avoid likely losses in sale.

The National Landlords’ Association (NLA) considers that these entrants would adversely affect the health of the British rental market. It warned that new entrants, particularly those who have not made up their mind for letting, must acquaint themselves with rules and regulations to operate tenancies successfully.

The number of new landlords opting for letting has increased at its fastest rate in third quarter of 2008. The research also highlighted that growth in instructions for houses was much higher than for flats. In third quarter, 56% of surveyors reported rise in new instructions as against 45% in the second quarter.

Though majority of new landlords are hoping their stay in letting business to be of short duration due to grim economic outlook, it is possible that they may have to rent properties for very long periods, waiting for decent capital growth.

NLA believes that potential landlords would find themselves in financial difficulties and risk well-being of tenants if several of serious issues related to letting were not investigated properly.

New landlords will have to ensure that they are permitted by their building society or bank to let out property and also make sure that their insurance policy covered letting of property.

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