Lettings market conditions 'becoming increasingly unfriendly'
News Category: Industry News
Published: 10-Sep-2009
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Operating costs and conditions in the lettings sector may be driving landlords away, according to an industry body.
The Residential Landlords Association (RLA) has expressed concern that an abundance of regulations and charges faced by those letting property is leading many to reconsider their future in the market.
It highlighted the cumulative cost of legal requirements for licensing and energy performance certificates for properties, as well as the impact of housing allowance being paid directly to tenants.
Mark Butterworth, a director at the RLA, suggested that such measures have impacted heavily on profit margins.
He also underlined the increasing threat posed by rental arrears due to rising levels of unemployment, suggesting that this will be a continuing problem to those who choose to remain in the market.
This comes after research group BDRC last month reported that 30 per cent of private landlords had been affected by rental arrears problems in the second quarter of 2009.
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