It is shaping up as a great year for landlords as new tenants flood the market says James Davis, chief executive of online letting agent upad.co.uk. He goes on to add:
“The availability of finance for first-time buyers is still stifling the sales market, meaning would be first-time buyers are being reluctant [to purchase] or forced to rent.”
We all have a lot of sympathy for those people who are struggling to get onto the property ladder. It must be very frustrating especially with the actual price of property being so affordable at the moment. I can foresee a situation where banks finally decide to lend first homeowners money, right at the time of a property price hike, effectively making them much worse in real terms.
The point is, however, that with the attitude the banks have at the moment, a lot of people are unable to purchase their own homes and, of course, they have to live somewhere. This is set to prove a boon for landlords.
There is a bright side as Mr Davies pointed out. Renting is more flexible and at least you know what to budget each month as repairs to things like boilers are issues for the landlord.
From the landlord’s point of view it is great to not have the worry of so many empty properties.