Landlords renting out properties through agencies are not subject to financial checks. But when they cannot pay the mortgage their tenants are often evicted. Is that fair?
Oliver Brett, BBC News – 26 February 2009
With repossessions on the increase, it is a problem more and more tenants are facing.
But as Britain gets used to recession, the lower profit margins gained from lettings – traditionally the less sexy side of the business – form the lifeblood that helps keep many of these companies afloat.
This raises the question of how letting agents themselves view prospective landlords, and how much time they spend checking out their credentials and whether or not they are up-to-date with their mortgage payments.
Because it appears not every homeowner looking for new tenants is quite as solvent as he should be.
The Council of Mortgage Lenders predicts repossessions across the UK this year will reach about 75,000. It could be many more – by the end of 2008, 182,600 mortgages had arrears worth 2.5% or more of the outstanding balance owed to the lender.
And often the last person to know about the problems encountered by a homeowner is the person paying them a regular monthly income – their tenant.
