'Casual landlords' must be well informed

Posted: 23 May 2008 12:37:19 GMT

Homeowners turning to the lettings market in response to the downturn in house sales should make sure they have the correct knowledge, an expert has warned.

Homeowners turning to the lettings market in response to the downturn in house sales should make sure they have the correct knowledge, an expert has warned.

Paragon Mortgages issued the advice after a Royal Institute of Chartered Surveyors (Rics) survey revealed that increased demand for rental properties was pushing up landlord's yields.

The Rics report, released yesterday (Thursday, May 22nd) showed a significant increase in lettings in 2008 as first-time buyers struggle to secure a mortgage deal.

John Heron, managing director of Paragon Mortgages, commented: "Casual landlords need to ensure that they do their sums properly, account for all costs and know the laws and legislation around renting property."

Would-be landlords need to ensure they comply with new reforms such as tenancy deposit protection so that they are not left "seriously out of pocket", Mr Heron said.

Advice issued to landlords by the mortgage company included having a tax plan and taking into account void periods and the cost of minor repairs when setting rental charges.

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