03/11/2010 - Rise in 'accidental landlords'
A growing number of homeowners are turning into "accidental landlords" as they struggle to sell their property for want of buyers in the market, new research suggests.
More common during the housing market slump between 2007 and 2009, the phenomenon of reluctant landlords seems to be making a reappearance in the rental sector.
According to the Association of Residential Letting Agents, during the third quarter one of out three of its members saw a rise in the number of properties being let by owners unable to sell.
Potential buyers are currently staying away from the market as the outlook for housing as well as the larger economy remains uncertain. Meanwhile, those who wish to go ahead with the purchase are facing difficulties accessing mortgage.
The number of accidental landlords had peaked at the beginning of 2009 when 94% of letting agents reported seeing an increase in properties coming on to the rental market because people had been unable to sell them.
At that time, the situation was caused by people being reluctant to accept a lower price for their property than they thought it was worth, as well as a shortage of buyers due to the mortgage drought.
Copyright © Press Association 2010
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