Landlords warned not to cut corners

buy-to-let landlords in the capital have been warned not to cut corners in an effort to meet rocket-high demand in the sector.

The property crash continues to gather pace with the latest report from the Royal Institution of Chartered Surveyors suggesting that confidence in the market has now fallen to a 30-year-low.

And with the downswing in home purchases resulting in a concomitant rise in demand for rented properties, the Association of Residential Letting Agents (ARLA) has warned landlords against capitalising on the market sentiment.

Ian Potter, ARLA head of operations, stressed that all investors must maintain their focus on safety standards and attaining the necessary qualifications.

"We are still worried that some landlords may try to cut corners and not comply with legislation covering safety and the protection of tenancy deposits," he admitted.

"We are also worried that there could be an upsurge in lettings agencies opening for business, without being members of the professional bodies, having the right qualifications and providing clients money protection."

According to ARLA, average returns for rented houses rose from 4.8 per cent to five per cent in Q1 2008.

Published 22nd April, 2008

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