ARLA Reports a Decrease in the Number of Reluctant Landlords

The results of the research undertaken by the Association of Residential Lettings Agents (ARLA), which were published on August 27th, suggest that the number of so-called “reluctant landlords” on London residential property market has shrunk significantly as consumer confidence started to return. Let us remind, that the term “reluctant landlords” became widespread with the beginning of the economic downturn as many British homeowners, who were unable or unwilling to sell their properties, flooded the buy to let market in an effort to repay their mortgages and/or earn their living. However, latest ARLA research showed a decline in the number of estate agencies offering properties for rent, which is especially true for London. According to Ian Potter, who takes the post of operations manager at the Association of Residential Letting Agents, the number of people, who had no other option but rent their house out, has declined; yet, there are still many “reluctant landlords” on the British market, who do not totally understand their obligations and responsibilities. Let us remind, that the first alarming report about “reluctant landlords” came in the 4th quarter of 2008 – just as British property values and consumer confidence level dropped dramatically - when 95% of UK estate agents were offering family houses for rent. The August report by ARLA demonstrates a 15% decrease in that figure, which fact, hopefully, means that consumer confidence is returning to the UK property market. London property market takes the leading position as the number of rental properties offered by estate agents fell by as much as 6.5%, from 72.5% to 66%, in 9 months (November 2008 – August 2009). In the opinion of experts of the Association of Residential Letting Agents, the increases in UK house prices for the 4th consecutive month contribute to the return of consumer confidence, which in its turn results in a decrease in the number of “reluctant landlords”, which fact is expected to give another boost to the recovery of the UK property market.