A report by buy to let guru Kate Faulkner says accidental landlords could unwittingly be contributing to some high profile problems in the private rental sector.
Faulkner’s new report - The Impact of Accidental Landlords on the Private Rented Sector - is a follow up to her report issued at the start of summer under the auspices of the TDS Charitable Foundation.
The first report - which we reported on in July - warned that many buy to let investors are not professional landlords but are instead accidental ones who end up letting out because they cannot sell their property and so rent themselves while letting their principal home, for exam,ple.
The latest report warns that properties being lett are subject to the owners’ circumstances, and so may involve tenancies that have to be suddenly terminated, for example.
“Due to the impact that 'accidental landlords' can have on the private rental sector, this report considers the definition of accidental landlords and why a landlord who isn't wholly focused on making money from property may end up being potentially more likely to let one that is substandard and 'accidentally' treat tenants unfairly” explains Faulkner.
The report suggests that in some areas accidental landlords could be providing up to 30 per cent of the available rental stock - and a high proportion of those units which, thanks to their owners’ ignorance, may be breaking regulations and laws on letting.
The report recommends mortgage lenders and insurance firms should offer greater assistance to landlords and tenants alike, with all bodies ranging from councils to letting agencies being better trained and updated on fast-changing private rental regulations.