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Accidental Landlords Return As Home Owners Struggle To Sell Their Homes


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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9118703/Accidental-landlords-return-as-home-owners-struggle-to-sell-their-homes.html

According to the Co-operative Bank, a fifth of its recent buy-to-let business has come from ‘accidental landlords' – where home owners choose to rent their existing property instead of selling it when they are looking to move to a new home.

Home owners are deciding to become landlords because they cannot sell their home. Recent figures by Rightmove show that properties are now, on average, on the market for over 105 days before they are sold. Last April the average time on the market was just under 80 days, showing that sellers are increasingly having to wait to sell their homes and move elsewhere.

Lee Gladwell, business development director at Platform, the Co-ops intermediary lender said: "Uncertainty around the economy, employment and house prices is continuing to dampen demand for house purchases and this is driving demand from those choosing to rent rather than buy."

"Our experience shows that some of those that want to move and are unable to sell are choosing to become landlords and rent out their existing property, at least until the market improves."

But home owners have been warned about taking on additional debts at a time when credit is not as affordable as it has been, and that they may be better off in the long term even if they sell up at a discounted price. David Hollingworth, of mortgage brokers London & Country, said: "You are taking on substantial more debt than you planned by becoming an accidental landlord, and the mortgage still needs to be paid whether you have tenants or not."

The trend is backed by the latest research from the Association of Residential Lettings Agents (ARLA). It indicates that the number of homes coming onto the rental market because they cannot be sold is increasing in some parts of the UK.

During quarter three in 2011, nearly half (47pc) of ARLA member agents surveyed reported a rise in the number of 'unplanned' lettings as home owners turn to the PRS because they are unable to sell their property, or holding off until a higher price is achievable. This figure has risen from 40pc at the beginning of the year.

ARLA President Tim Hyatt, said: "Lettings is an unregulated industry and there can be pitfalls for both landlord and tenant, including loss of monies. While we are, of course, happy to see an increase in the number of landlords, it is vital that every landlord – reluctant or keen – seeks expert advice before embarking on a rental arrangement.

Edited by Dave Beans
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According to the Co-operative Bank, a fifth of its recent buy-to-let business has come from ‘accidental landlords' – where home owners are talk into a BLT mortgage and then rent their existing property instead of selling it when they are looking to move to a new home

That's more like it ,they then become savvy investors with two mortgages instead of one ( mortgage broker rubs his hands)

Edited by long time lurking
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ive viewed 30 homes in cornwall for rent in the last month and 100% of them are hosues that wont sell...........its very messy.50% of estate agents have lied to me and told me they werent for sale and every house still had the 4 sale board in the garden , behind bushes , behind walls....or whats best - the for rent photos on right move have the for sale sign in :))))) Estate agents seem to be losing all rationality .Very odd ..

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I have a friend moving from a professional landlord who has no money for repairs to an accidental landlord who has promised if anything needs doing it'll get done.

When it comes to spending lots of money on repairs I suspect neither group wants to spend money.

The big landlord is about to have 3 empties on our street cos he has failed to keep the tenants happy with repairs.

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According to the Co-operative Bank, a fifth of its recent buy-to-let business has come from ‘accidental landlords' – where home owners are talk into a BLT mortgage and then rent their existing property instead of selling it when they are looking to move to a new home

That's more like it ,they then become savvy investors with two mortgages instead of one ( mortgage broker rubs his hands)

I know food inflation has been rampant recently... but now you need a mortgage for a sandwich :o

Edited by ScrewsNutsandBolts
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Do not rent from an accidental landlord. Apart from the warm feeling inside you'll get from not handing money to someone who won't price their property at a level people can afford, you'll be subjected to all sorts of idiocy from someone who has no clue what their responsibilities are or what the tenants rights are. These are the ones that fill the garage with their furniture, turn up unannounced and breeze past you when you open the door because after all, this is their property! You'll also get decorators etc turning up expecting to come in and start doing work as they improve it ready for sale.

Avoid avoid avoid avoid avoid. Avoid.

Check the rental listing, the lazy estate agent would have left all the details on the listing from the 'for sale' one. If it has room dimensions, a floor plan, if the photos show rooms full of clothes and childrens toys, any of that stuff.... its in the reject pile.

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Do not rent from an accidental landlord. Apart from the warm feeling inside you'll get from not handing money to someone who won't price their property at a level people can afford, you'll be subjected to all sorts of idiocy from someone who has no clue what their responsibilities are or what the tenants rights are. These are the ones that fill the garage with their furniture, turn up unannounced and breeze past you when you open the door because after all, this is their property! You'll also get decorators etc turning up expecting to come in and start doing work as they improve it ready for sale.

Avoid avoid avoid avoid avoid. Avoid.

Check the rental listing, the lazy estate agent would have left all the details on the listing from the 'for sale' one. If it has room dimensions, a floor plan, if the photos show rooms full of clothes and childrens toys, any of that stuff.... its in the reject pile.

That is some very sound advice - thanks for posting.

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  • 3 months later...
According to the Co-operative Bank, a fifth of its recent buy-to-let business has come from ‘accidental landlords' – where home owners choose to rent their existing property instead of selling it when they are looking to move to a new home.

...reported a rise in the number of 'unplanned' lettings as home owners turn to the PRS because they are unable to sell their property, or holding off until a higher price is achievable.

I so hope something is coming along to rout out all these home-owners who've refused to sell, event though having plenty of equity, and chosen to rent. Higher SVRs, falling market rents, voids.

Regularly I see more houses switched from sale, to let. And more boards for houses offered for sale and to let. £300,000+ homes. They deserve to regret selling when they could have achieved a sale at a good price.

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Do not rent from an accidental landlord. Apart from the warm feeling inside you'll get from not handing money to someone who won't price their property at a level people can afford, you'll be subjected to all sorts of idiocy from someone who has no clue what their responsibilities are or what the tenants rights are. These are the ones that fill the garage with their furniture, turn up unannounced and breeze past you when you open the door because after all, this is their property! You'll also get decorators etc turning up expecting to come in and start doing work as they improve it ready for sale.

Avoid avoid avoid avoid avoid. Avoid.

Check the rental listing, the lazy estate agent would have left all the details on the listing from the 'for sale' one. If it has room dimensions, a floor plan, if the photos show rooms full of clothes and childrens toys, any of that stuff.... its in the reject pile.

+10

Offering a property for rent, when its actually for sale should be unlawful IMO.

Accidental landlords...? Just say NO!

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Do not rent from an accidental landlord. Apart from the warm feeling inside you'll get from not handing money to someone who won't price their property at a level people can afford, you'll be subjected to all sorts of idiocy from someone who has no clue what their responsibilities are or what the tenants rights are. These are the ones that fill the garage with their furniture, turn up unannounced and breeze past you when you open the door because after all, this is their property! You'll also get decorators etc turning up expecting to come in and start doing work as they improve it ready for sale.

Avoid avoid avoid avoid avoid. Avoid.

Check the rental listing, the lazy estate agent would have left all the details on the listing from the 'for sale' one. If it has room dimensions, a floor plan, if the photos show rooms full of clothes and childrens toys, any of that stuff.... its in the reject pile.

A lot of good points, but wrt room dimensions. I would be very keen to know of them, whether renting socially, privately, or heaven forbid buying. Even in a squat you get the fkin tape measure out!

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So people would rather have 2 large mortgages as opposed to reducing the price and having one large mortgage?

I know an accidental landlord. They are doing all the work that is required for it to be rentable. They have had to move for work and are renting where the work is

It is often said that renting increases workers mobility... The homeowner that rents and rents out is more inclined to move for work, than say a person with very little who has to bare the burden of rent himself...

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Everyone I know who has moved in the last year has rented their old place out because either it will not sell or they are not sure if the move will work out. It is like some kind of epidemic.

I know a couple of accidental landlords.

One didn't go so well ... rent didn't cover the mortgage and the tenants trashed the place. He's just recently sucked it up and sold (for less than he bought a few years ago)

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According to the Co-operative Bank, a fifth of its recent buy-to-let business has come from ‘accidental landlords' – where home owners are talk into a BLT mortgage and then rent their existing property instead of selling it when they are looking to move to a new home

That's more like it ,they then become savvy investors with two mortgages instead of one ( mortgage broker rubs his hands)

...doesn't say much for the Co-op as lenders...accidental landlords are usually not professional....and they are joining this poor risk...so much for ethics.... :rolleyes:

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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