Trick times not over yet for landlords

Despite low interest rates and signs of stability in the housing market the remainder of 2010 will continue to pose some challenges for private landlords, says Landlord Assist.


Many commentators have suggested that life for landlords is finally getting easier with rental figures marginally increasing over the last few months as more and more people have turned to rented accommodation during the financial crisis.

But the company says that whilst there are signs of optimism in the market, private landlords still face growing rent arrears caused by continued unemployment rates and the ongoing failure of the Local Housing Allowance system - whereby rent paid to cover housing costs is paid to the tenant, in the hope that they pass it on, instead of directly to the landlord.

In addition to facing rent arrears, landlords also continue to operate against a raft of administration and legislation in order to keep their properties let and the rents coming in.

Graham Kinnear, MD says: "Whilst the future looks much brighter for landlords in terms of demand for rented accommodation and marginal increases in rent, landlords continue to battle against rent arrears and increasing red tape. As a result, the following few months will remain tricky for landlords even though there finally appears to be grounds for optimism.

“Landlords are unable to sustain non paying tenants and must take precautionary measures at the start the of tenancy agreement, such as reference checks, to minimise the risk of being exposed to rent arrears.”

Further struggles facing landlords include the difficulty with which they are able to secure funding for additional purchases and remortgages of existing stock as well as funds for renovation, repair and refurbishment work. All of these factors are impacting the quantity of private rented accommodation available.


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