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At the height of the economic recession, 94% of all properties coming on to the rental market were there because the owner was unable to sell. Instead of staying put, they chose to let their home out in the hope that the property market would pick up again. These people were dubbed ‘accidental landlords’ because they were being forced into the role of a landlord against their wishes. Thankfully times have changed and the property market is on the up—demand is soaring and house prices are booming, especially in the south. So does this spell the end of the accidental landlord?
Fall in the Number of Accidental Landlords
The latest figures show that the number of properties coming on to the rental market because their owner can’t sell has fallen to just 13%, which is a significant reduction on the figure from 2009, a time when the housing market was in crisis.
Buy to Let a Shrewd Investment
Most people today will have no problem selling their home and therefore have no need to let it out as a short-term solution. Even homes in a terrible state are attracting serious buyer interest, although this does vary according to region (the property market in London and the south east is far more buoyant than, say, Tyne and Wear). However, buy to let is increasingly being seen as a lucrative long-term investment, something that is borne out by the results of an ARLA survey—only 1.5% of those surveyed said they were hoping for a short-term capital gain.
So, whether you are an accidental landlord (or not), you can make good returns from your property—as long as buy in the right areas!
