Number of accidental landlords increasing
Research suggests that the number of first time landlords as well as those turning to renting out their property has increased this year.
While 2008 saw the lowest level of demand for buy-to-let mortgages since then there has been significant increases, as homeowners look to maximise the demand for homes and tenants are priced out of the mortgage market.
Although professional landlords remain the ‘backbone’ of the market, the number of private landlords who are new and typically rent out 1 to 5 properties has increased to a high level.
The rise could also be attributed in part to the fragile state of the employment market. As people struggle to find full time work they are entering the property market as way to supplement income as well as satisfy the demands of a hungry private rental market.
Professional landlords are more constrained in terms of flexible equity, therefore this has also produced a gap which ‘accidental landlords’ are finding they can fill.
Is this a good thing for the industry? How do you think it will affect the reputation, services provided and profit of professional landlords?
About the authorEddie Hooker has been involved in the insurance industry since 1985. He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996. Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection.
Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association.
By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support. This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.
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