Rise In Reluctant Landlords

[Pent Up]

Can't provide a link as it's from my iPhone sky news app. I burgled this though

Uncertainty Means Rise In Reluctant Landlords

Last Updated 14:52 10/10/2010

Enda Brady, Sky News reporter

Uncertainty in the housing market is creating a new wave of so-called "reluctant landlords" - property owners who are being forced to move out or let rooms just to get by.

New research from insurance firm More Than Business suggests as many as one-in-three homeowners would be prepared to consider letting out either a room or even the entire property.

Jonathan McLaren bought a flat in London last year but within months the mortgage payments were crippling his finances and he was forced to move back in with his parents.

"It's not ideal but I took a long hard look at the figures and this was the best way around the problem," said Jonathan, 25.

"I wanted to be in London because it's where I work and where most of my friends are. Being back home in Surrey is more comfortable but a major drawback is that I'm 33 miles away from London now and around here you need a car to go everywhere."

Mark Underwood bought a two-bedroom apartment with his sister three years ago but when she moved out to live with her boyfriend he found that the best financial solution was to rent out her room to a friend.

"In an ideal world we wouldn't be renting out the room, but this is simply the best way to solve the problem.

"It works for us but being a landlord is not really something I aspired to."

Property experts say the rise of the reluctant landlord is a direct result of economic uncertainty.

"It's a very worrying time for a lot of people," said Trevor Kent, a former president of the Estate Agents' Association. "I believe repossessions are likely to go up quite dramatically in the next six months.

"The property market is in a state of flux at the moment."

But many of these new "reluctant landlords" are unaware of the rules and the potential pitfalls.

"The key thing is that only 15% of people have had no problems with their tenants, so that obviously leaves 85% of new landlords who are finding problems, " said Mark Bowman from insurance firm More Than.

"That's a big issue because it's an expense to sort it out. Many were unprepared for the red tape, others failed to secure the rent they anticipated, while one in five suffered damage to their property.

"There are many pitfalls when letting a property, it's not as simple as finding a tenant and waiting for the rent to come in."

Did an estate agent really just say that? A significant rise on repos would put the Market into freefall! (if is isn't already )

[moonriver]

Very interesting, thanks for posting.

Here is the link.

http://news.sky.com/skynews/Home/Business/Rise-In-Property-Owners-Renting-Out-Rooms-Or-Moving-Out-To-Cope-In-Recession/Article/201010215755398?f=rss

I have noticed in my area ,there are becoming an increasing number of properties that are both up "for sale" and up "to let" at the same time.

I too am surprised at an estate agent commenting on an increase in repossessions coming up. Things must be bad then.

New research from insurance firm More Than Business suggests as many as one-in-three homeowners would be prepared to consider letting out either a room or even the entire property.

One- in- three

Sounds like a huge number, looking to get some money coming in, from letting out.

[Pent Up]

Thanks for adding the link. The sky news site is way to complicated for my little iPhones brain so couldn't search for it.

I've actually noticed both for sales with a to let added and to let's now up for sale aswell. Obviously some investors looking to take profits.

I like the way it points out all the pitfalls of letting.

[moonriver]

I like the way it points out all the pitfalls of letting.

Yes, this certainly makes a change. On shows such as "Homes Under the Hammer",they never mention the pitfalls such as voids. I repeatedly hear "I'll just rent it out, till the market improves". They make it sound so simple.

I note you can leave comments on this article.

Look at this one...

"SibleyPosted by: Sibley on October 11, 2010 10:11 AM

Much better to find lodgers than sell your house and lose money. This blip will be over soon. You would desperately regret selling cheap and watching your house go up later.

[Tonkers]

Very interesting, thanks for posting.

Here is the link.

http://news.sky.com/skynews/Home/Business/Rise-In-Property-Owners-Renting-Out-Rooms-Or-Moving-Out-To-Cope-In-Recession/Article/201010215755398?f=rss

I have noticed in my area ,there are becoming an increasing number of properties that are both up "for sale" and up "to let" at the same time.

I too am surprised at an estate agent commenting on an increase in repossessions coming up. Things must be bad then.

One- in- three

Sounds like a huge number, looking to get some money coming in, from letting out.

Ooooh, wonder what that will do for rent prices. I know someone who takes in lodgers, they are not exactly swamped with demand, just the odd foreign student. This is North London.

[Pent Up]

That guy just doesn't give up does he! I think someone should add a comment pointing out that Sibley is a failed property investor desperate for prices not to drop.

[Captain Cavey]

Very interesting, thanks for posting.

Here is the link.

http://news.sky.com/skynews/Home/Business/Rise-In-Property-Owners-Renting-Out-Rooms-Or-Moving-Out-To-Cope-In-Recession/Article/201010215755398?f=rss

I have noticed in my area ,there are becoming an increasing number of properties that are both up "for sale" and up "to let" at the same time.

I too am surprised at an estate agent commenting on an increase in repossessions coming up. Things must be bad then.

One- in- three

Sounds like a huge number, looking to get some money coming in, from letting out.

from the comments at the above link:

Posted by: Sibley on October 11, 2010 10:11 AM

Much better to find lodgers than sell your house and lose money. This blip will be over soon. You would desperately regret selling cheap and watching your house go up later

He’s on a one-man mission now, popping up & ranting to anyone who will listen

[moonriver]

He’s on a one-man mission now, popping up & ranting to anyone who will listen

Yes, he certainly pops up quick enough, to give his unchanged message.

You'd think though, that after the latest hpc stats just released, that he'd fast be running out of anyone at all to listen to him.

[goldbug9999]

Letting rather than selling is a leveraged play on capital appreciation - i.e. an incredibly dumb idea in a market that is on the cusp of sharp decline.

Edited October 11, 2010 by goldbug9999

[juvenal]

Very interesting, thanks for posting.

Here is the link.

http://news.sky.com/skynews/Home/Business/Rise-In-Property-Owners-Renting-Out-Rooms-Or-Moving-Out-To-Cope-In-Recession/Article/201010215755398?f=rss

I too am surprised at an estate agent commenting on an increase in repossessions coming up. Things must be bad then.

The biggest agent in my local high street isn't saying a lot. He closed down this month.

[REP013]

Can't provide a link as it's from my iPhone sky news app. I burgled this though

Uncertainty Means Rise In Reluctant Landlords

Last Updated 14:52 10/10/2010

Enda Brady, Sky News reporter

Uncertainty in the housing market is creating a new wave of so-called "reluctant landlords" - property owners who are being forced to move out or let rooms just to get by.

New research from insurance firm More Than Business suggests as many as one-in-three homeowners would be prepared to consider letting out either a room or even the entire property.

Jonathan McLaren bought a flat in London last year but within months the mortgage payments were crippling his finances and he was forced to move back in with his parents.

"It's not ideal but I took a long hard look at the figures and this was the best way around the problem," said Jonathan, 25.

"I wanted to be in London because it's where I work and where most of my friends are. Being back home in Surrey is more comfortable but a major drawback is that I'm 33 miles away from London now and around here you need a car to go everywhere."

Mark Underwood bought a two-bedroom apartment with his sister three years ago but when she moved out to live with her boyfriend he found that the best financial solution was to rent out her room to a friend.

"In an ideal world we wouldn't be renting out the room, but this is simply the best way to solve the problem.

"It works for us but being a landlord is not really something I aspired to."

Property experts say the rise of the reluctant landlord is a direct result of economic uncertainty.

"It's a very worrying time for a lot of people," said Trevor Kent, a former president of the Estate Agents' Association. "I believe repossessions are likely to go up quite dramatically in the next six months.

"The property market is in a state of flux at the moment."

But many of these new "reluctant landlords" are unaware of the rules and the potential pitfalls.

"The key thing is that only 15% of people have had no problems with their tenants, so that obviously leaves 85% of new landlords who are finding problems, " said Mark Bowman from insurance firm More Than.

"That's a big issue because it's an expense to sort it out. Many were unprepared for the red tape, others failed to secure the rent they anticipated, while one in five suffered damage to their property.

"There are many pitfalls when letting a property, it's not as simple as finding a tenant and waiting for the rent to come in."

Did an estate agent really just say that? A significant rise on repos would put the Market into freefall! (if is isn't already )

Big T rides again - the EA who was on the R4 phone in the other day suggesting that things weren't that bad, interesting to know his comments change dependent on the audience!

[23rdian]

I have been offered a flat for rental today from a reluctant landlord.

They want to sell to upsize for roughly the price paid in 2006 but has been on market for at least 12 months.

It's a new build in a reasonable area in good condition but it's very pokey.

I suspect they have been spooked by the -3.6% drop.

I have calculated their rental yield at approx 4.6% before tax However they want me to also pay a monthly maintenance charge.

Is this normal? I have already knocked them down by £50pm. Was thinking of offering them 1/2 the fee at most? Advice?

Edited October 11, 2010 by 23rdian

[Si1]

I have been offered a flat for rental today from a reluctant landlord.

They want to sell to upsize for roughly the price paid in 2006 but has been on market for at least 12 months.

It's a new build in a reasonable area in good condition but it's very pokey.

I suspect they have been spooked by the -3.6% drop.

I have calculated their rental yield at approx 4.6% before tax However they want me to also pay a monthly maintenance charge.

Is this normal? I have already knocked them down by £50pm. Was thinking of offering them 1/2 the fee at most? Advice?

Nooooooooooooooooooo!

[19 year mortgage 8itch]

I have been offered a flat for rental today from a reluctant landlord.

They want to sell to upsize for roughly the price paid in 2006 but has been on market for at least 12 months.

It's a new build in a reasonable area in good condition but it's very pokey.

I suspect they have been spooked by the -3.6% drop.

I have calculated their rental yield at approx 4.6% before tax However they want me to also pay a monthly maintenance charge.

Is this normal? I have already knocked them down by £50pm. Was thinking of offering them 1/2 the fee at most? Advice?