Large family homes are now coming on the rental market.
The number of homes coming onto the rental market because they cannot be sold is increasing according to figures from the Association of Residential Letting Agents (ARLA).
During the third quarter of 2011 some 47% of ARLA members reported a rise on the number of ‘unplanned’ lettings by homeowners who were either unable to sell their homes, or who are holding off until a higher price is attainable.
The proportion of accidental landlords rose from 40% at the start of 2011.
The economic downturn has forced many to rent their homes as those usually stepping up the bottom of the property ladder are unable to find a mortgage. While this makes for a more buoyant rental market, it means that more established homeowners are unable to feel their properties.
The ‘unplanned’ lettings market was noted to be growing particularly in the North East and North West, with some 67% and 62% respectively of properties coming onto the market because they cannot be sold.
The figure was lowest in central London at 17%.
This new type of landlord is most likely to be inexperienced and unsure. Many will want properties let without alterations, often making them unsuitable for the student and HMO market with its strict guidelines and regulation.
