New research from agents Bairstow Eves, part of the Countrywide Group, has shown that there has been a rise over the last three years in accidental landlords.
Although many landlords are part of the private rental sector by choice, recent years have seen a rise in the number of those who are letting a property that they had previously attempted to sell. A slowdown in the sales market in the South of England has led to a reinvigoration of accidental landlords in the UK as many choose to let their properties rather than waiting to sell them.
One in 12 homes that came onto the rental market in 2017 had previously been up for sale within the last six months, according to a new analysis report from agent Bairstow Eves. This is the third consecutive annual increase. However, the figure still remains well below 2010’s peak of 11.2 per cent of new rental properties having previously been on the sales market.
London remains the key accidental landlord location in the UK. In 2017 approximately 12.5 per cent of homes that joined the rental market had previously been up for sale. This marks the highest figure since Countrywide began taking records, surpassing the previous peak of 12.1 per cent, reached in 2010.
The report found that there was significant regional variation. A stronger sales market outside of the capital meant that potential sellers across the rest of Britain would be far less likely to put their home up for rent. A mere 5.6 per cent of new rental properties in Scotland had previously been on the buy to let market.
Accidental landlords also have far less commitment to the buy to let sector, and tend to remain privately letting properties for a much shorter period. The average investor owns their rental property for 17 years. In comparison, the typical accidental landlord rents out their home for an average of just 15 months.