Rental Market 'Set for Big Changes' in 2012

The potential departure of many accidental landlords from the rental market in 2012 could result in a "big change" for the sector, it has been asserted.

That is the prediction of Alan Ward, chairman at the Residential Landlords Association, who said that there is a certain degree of unpredictability in the market this year.

His comments followed the publication of statistics revealing that buying now beats renting in 47 of the 50 largest towns across the UK, with high rental demand and low mortgage rates making propertypurchases more attractive.

Mr Ward commented that landlord confidence in the buy to let market in 2012 depends on the equity position of the borrower, as landlords are still requiring substantial deposits, while buy to let lenders are not easing their criteria.

He explained: "People with a portfolio of 12 or 13 properties are not accidental investors, but there is a sector of the market that is likely to come to sell as property values begin to increase - these are the accidental landlords who have been forced to rent because they can't sell for whatever reason."

The expert added that some estimate there are 100,000 properties in that particular sector so, if they come back on the market, it will lead to "quite a big change".