A feature of the rental market over the last few years has been the rise of the ‘accidental landlord’, an owner-occupier who ends up letting a property out as a result of circumstance, and a moribund sales market, not design.
However, an interesting finding from Rightmove’s Rental Market Forecast, released earlier this week, was that one in eight accidental landlords have found their unplanned, and in most cases unwanted, foray into property letting so rewarding that they now want to build a portfolio by purchasing another home to rent out.
Accidental landlords make up around 30% of all landlords according to Rightmove’s figures and are largely seen as a casualty of the credit crunch. However, rising rents and lack of voids have alleviated their plight to such an extent that when asked what their plans are for their current rental property, 12% of this group responded that it had gone so well that they are looking to buy another property, with a further 69% reporting that we would be holding onto their rental property and just 16% stating that they still want to sell it as soon they can.
“Though not landlords by design, many of those accidentally thrust into the landlord arena have not only survived but thrived in many instances. From being one of the major casualties of the post-credit crunch market, some accidental landlords are now major beneficiaries. They provide a fascinating insight into the structural shift we have seen in the private rented sector over the past few years. The growth in rental demand and appeal of the buy-to-let sector to lenders has helped turn a chance encounter with the rental market into a further and valuable source of fresh supply to satisfy the needs of those trapped by ‘Generation Rent’.”