Could tenant demand rise as accidental landlords leave the sector?

It is estimated that hundreds of thousands of rented houses are owned by accidental landlords, which could mean landlords insurance customers will see even greater tenant demand when these reluctant investors leave the sector.

And it looks like this time may not be too far in the future, as chairman at the Residential Landlords Association Alan Ward has predicted those who only leased their abodes because they could not sell them will put their domiciles back on the market as house prices increase.

"Some people say there are 100,000 properties in that sector and, if that comes back on the market, then that is quite a big change," he stated.

Indeed, an exodus of accidental landlords is likely to further increase the gap between the the number of people looking for rented property and the amount available.

Tenant demand is already outweighing supply, with Zoopla.co.uk recently reporting this is due to low mortgage rates and the difficulties of would-be first-time buyers in accessing finance.

Get a cheap landlords insurance quote today from Simple Landlords Insurance.

Posted by Luella Ravelin