Landlord confidence tainted by arrears and finances

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by Gill Montia

Upad is claiming that the bulk of landlords are continuing to feel more positive about the UK rental market.

The lettings agent’s latest Rental Confidence Index suggest 57% were more optimistic about the buy-to-let sector in February 2010, compared to January.

However, the proportion fell from 64% in January and alongside the positive feedback survey respondents highlighted “lingering issues surrounding arrears and finances”.

One statement summed up: “Rental is stable but arrears are mounting due to job losses.”

For the 43% of landlords feeling less confident in February, a surplus of rental property and anxiety over interest rate rises were among concerns.

Undaunted, Upad chief executive officer, James Davis, comments: “I do believe we have turned a corner and that we will continue to see a greater number of new entrants to the sector, as banks begin to open their doors to lending, and renting becomes increasingly popular.”

Earlier this week, rival lettings agent, Leaders, reported that business was booming across its 42 branches.

The firm’s managing director, Paul Weller, commented that a lack of mortgage finance has continued to heighten demand, adding to the UK’s pool of “reluctant tenants” who either cannot afford to buy; cannot find a competitive mortgage; or are unable to find a suitable property to purchase.