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Increase in ’reluctant landlords’ is good news for letting agents
Property owners wishing to sell, but unwilling to lower their asking price are increasingly becoming ’reluctant landlords’ and turning to the lettings market to provide an alternative solution.
This has led to a sharp rise in the number of properties to rent, according to the Royal Institution of Chartered Surveyors (RICS), and is resulting in higher value property entering the private rental sector (PRS). Research for Q1 2011 shows an 11.6% increase in the average capital value of rental houses, from £401,400 to £447,900. All of which is excellent news for anyone thinking of becoming a letting agent.
Further research confirms an increase in property coming onto the market because it could not be sold, a large proportion of which is semi-detached and detached family homes. This is of course good news for letting agents, and a further reason for anyone planning on starting a letting agency to act now.
Ian Potter, an industry insider, said: “We believe that this increase in the overall average capital value of rental properties has been driven by different types of home being offered to let. Today’s housing climate and uncertainty around jobs and income means many people are choosing to let rather than sell their home, causing an increase in the number of family-sized homes available to rent.“
Industry expert Mike Hathaway, of Southcourt Property Services commented “There is no doubt that letting agents are gaining benefit from the rise in reluctant landlords, most of whom have little or no knowledge of the legal obligations and requirements in letting their properties. Letting agents are providing a valuable and essential service in educating and informing these new landlords of their responsibilities.“
Posted: 15 April 2011
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