Economic growth in the lettings sector is great news for landlords

Recent economic growth in the lettings sector has been great news for landlords. Six out of 10 residential landlords are more confident than last month, up from 54% in November, the December Upad Landlord Confidence Index shows.

Key reasons for confidence included stronger and quality rental demand with more opportunity to negotiate on house prices, high demand and low interest rates and low void periods.

Those landlords who said that they were less confident, included those who had experienced increases in arrears and unpaid rent by their tenants.

However lack of available finance continues to hamper our investors. The market is currently being held back by banks who just don't want to lend out money to the buy-to-let sector.

In a time of boom in the lettings sector landlords still need to be careful to vet their tenants carefully, as government cuts begin to have more impact, landlords more than ever need to be vigilant about their cash flow and ensure that – if the worst happens and their tenant does stop paying – they have enough available cash to service a mortgage without their rental income.

At Intercounty we make sure that rental applicants are carefully checked, which lowers the risk of finding yourself with clients unable to pay their rent. We have a comprehensive agreement applicable to property, term and tenant, and we use an ARLA approved document, which can be legally enforced. For more information go to www.intercounty.co.uk. Better let through us.