More and more people are becoming 'accidental landlords'

News Category: Industry News

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Many landlords enter the sector by accident when they acquire more than one house, an industry expert has claimed.

Chris Horne, editor of the Property Hawk website, said that as many as a quarter of landlords enter the rental sector 'accidentally' - for example when they acquire an extra house through marriage or inheritance.

Mr Horne added that these 'accidental landlords' were insulated from the ongoing credit crunch as "they've often got low levels of gearing or none at all".

He explained: "It's actually a very low risk investment because even if prices stagnate or go down by a small amount, their capital's not at risk.

"Also, the fact that their mortgage repayments are low means that they're getting a regular income from it."

However, Mr Horne also pointed out that it was often necessary for these accidental landlords to redecorate properties to ensure they appeal to the market.

"A property that's either inherited or they've lived in themselves… may well have been done up to their own particular tastes, which doesn't always fit well with the lettings market," he concluded.

"In the lettings market you have to maximise your appeal to the widest market - the interiors have to be done quite plainly and neutral."

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