Potential landlords need expertise

Paragon Mortgages has warned homeowners thinking of letting their property that they will need to do their homework.

Responding to the Royal Institution of Chartered Surveyors’ April Residential Lettings Survey, John Heron, managing director of Paragon, said: “Tenant demand is currently rising rapidly as potential first-time buyers struggle to get loans for house purchase. This, coupled with an increasingly difficult market environment, is causing a growing number of people to rent their homes privately instead of selling.

“But casual landlords need to ensure that they do their sums properly, account for all costs and know the laws and legislation around renting property." Heron highlighted a number of new reforms that have been introduced in recent years, such as tenancy deposit protection and licensing for Houses in Multiple Occupation (HMOs). He said non-compliance could leave landlords seriously out of pocket.

“This is actually a case of history repeating itself. The greatest driver of the private rented sector in recent times was homeowners deciding to let their properties during the downturn in the early nineties. However, homeowners going down this route have to ensure they have the correct knowledge,” he warned.