Rental market 'may be affected by accidental landlords exit'

Posted: 28 Dec 2011 11:49:09 GMT

A big change could be in store for the rental sector should there be an exodus of accidental landlords from the market.

The rental market in the UK could be significantly impacted in the event of a mass departure of accidental landlords from the sector.

This is the suggestion of Alan Ward, chairman of the Residential Landlords Association, who noted there have been proprietors forced into this position as a result of their inability to sell property.

According to the industry figure, this group is likely to begin offloading its dwellings as house values begin to escalate.

Mr Ward stated: "Some people say there are 100,000 properties in that sector and, if that comes back on the market, then that is quite a big change."

He went on to point out that confidence among landlords regarding 2012 is likely to be dependent on the equity position of borrowers, as proprietors continue to demand substantial deposits. 

His comments come after recent findings from Zoopla showed buying is a more cost-effective option than renting in 47 of the 50 biggest towns across the UK.
 

© Houseladder Ltd