‘Accidental landlords’ was a phrase coined during the height of the recession for homeowners who were forced to rent out their properties instead of selling them at a lower price or potential loss.
This influx of 'accidental landlords' played a pivotal role in helping to address the shortage of accommodation at the height of the recession as more people opted to rent than ever before.
Earlier this year Landlord Assist expressed their concerns that an exodus of ‘accidental landlords' may hit the supply of quality rented accommodation in the rental market, especially at a time when the sector is experiencing overwhelming demand.
But now it seems that many accidental landlords are remaining in the industry for a prolonged period of time - certainly longer than originally envisaged.
Graham Kinnear, Managing Director of Landlord Assist says:
“Earlier this year we were concerned that with the housing market showing potential signs of improvement this may have sparked an exodus of 'accidental landlords', resulting in a severe shortage of properties.
"However, it appears that the number of accidental landlords has not really started to fall. This could either suggest that they are happy to remain in the buy to let market, even though that was never their original intention, and capitalise on the current demand and higher rents, or they are unable to exit the marketplace.”
Stephen Parry, Commercial Director at Landlord Assist says:
"Our thoughts are that many ‘accidental landlords’ still feel trapped in the market, and subsequently are biding their time in the buy to let market rather than selling their properties at a loss.
“The attainable values of properties for many ‘accidental landlords’ may still be some way short of their valuation and value of their mortgage. Likewise, the inability for many to raise a new mortgage on a different property may be hampering their movement.”
