NLA issues warning to 'would-be' landlords
10 January 2012
Written by Jenny Barrett
The National Landlords Association has issued a warning to amateur landlords, urging them to consider the rules and regulations surrounding letting out their home.
The warning comes as many people are choosing to let out their home as an alternative to selling, as house prices are expected to drop this year. A forecast by Knight Frank Housing has predicted that house prices could fall by around five per cent over the course of 2012.
A recent survey of landlords by the National Landlords Association (NLA) found that average rental yields across the country now stand at 6.7 per cent.
As a result of this, many homeowners are considering becoming amateur landlords – letting out their home rather than selling it.
“If house prices fall this year, we may see more homeowners who were planning to sell instead considering letting their homes while they wait for the market to stabilise,” said David Salusbury, Chairman of the NLA.
“There are currently a record number of people searching for rental properties, meaning would-be landlords would have no problem finding a tenant.”
“There are currently a record number of people searching for rental properties, meaning would-be landlords would have no problem finding a tenant.”
But the NLA is concerned that would-be landlords will not consider the details surrounding the letting out of their home.
It is, therefore, issuing a range of guidelines to ensure that ‘would-be’ amateur landlords comply with the regulations of the Private Rented Sector.
These include providing a proper tenancy agreement to outline details of the tenancy, using a deposit protection scheme to protect tenants’ deposits, and taking out comprehensive landlords insurance to protect the property.
“Letting a property can be a rewarding experience and an effective way of providing additional income, but prospective landlords will need to remember they are effectively starting a small business,” added Mr Salusbury.
“They must ensure they are well aware of the rules and regulations governing the letting of private residential accommodation.”
