The centre of London has become a hotbed of property owned by landlord insurance holders who do not live there, the Association of Residential Letting Agents (ARLA) has suggested.
The ARLA has looked into the area’s proportions of landlords and property and announced its findings.
It could be that nearly half of the landlord insurance holders who are renting out the likes of houses and flats in this central region do not actually live there, it concluded.
Ian Porter operations manager for the body, which represents letting agents, gave his ideas as to why this might be.
He suggested the case of a graduating student, whose parents maintain their position as landlords of a home they purchased for their studying child.
Mr Porter advised that: “It is a common phenomenon for landlords to let properties in different parts of the country and it is likely that trend will grow, for example as owners increasingly opt to let out a property rather than sell.”
The ARLA’s findings, based on the private rented sector, cite Scotland as a second hotspot for what it termed ‘long distance landlords’.
Such landlord insurance holders are not as common in some other areas, the ARLA add. Among these locations, more heavily targeted by those landlords who do live in the local area, are England’s south west and south east, they say.
The ARLA’s news was revealed as one property expert praised London as “the place that you want to be”.
The director of estate agents Prickett & Ellis, Nigel Ellis, enthused: “It has got glamour and an attraction that people choose, definitely.”
Asked if there was a perception of the location as a ‘safe haven’, he agreed that for “the world out there and the eurozone” it was.
“That is borne out by the money that is coming into the country,” he said.
On the topic of long-distance landlords, Ian Porter added: “Anyone who owns property away from their home town should be mindful of the challenges that long-distance lettings can pose if not effectively managed.”
Recently, the ARLA reminded landlords to: “ensure you have specialist buildings and contents insurance covering the items you own in the [rented] property.”
Naturally, the reassurance of insurance is exceptionally vital to those living some way away from the house or flat they have purchased.
At Rentguard, one of the UK’s leading suppliers of landlord insurance, the products have been tailored to meet specific landlord’s needs and demanding requirements of the modern day investor.
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