People to become reluctant landlords to stave off debt fears?

A number of people may become reluctant landlords to prevent themselves from falling into debt in the event of a double-dip slump in the UK housing market, new research has found.

The study, which was carried out by More Than, revealed ten per cent of British homeowners believe they will have no other option but to let their property and downsize following such a downturn.

This figure means 1.75 million properties would be affected in this way.

An additional 34 per cent of respondents in the survey admitted they would be forced to consider such a move.

It is likely London would be the most affected area in Britain, with 14 per cent of homeowners claiming they would become landlords, while a further 42 per cent said they would think about it.

The report found the main reasons people would take such action are to hold on to their properties until the market bounces back (44 per cent) and to ensure financial security in the long term (33 per cent).

Moreover, 27 per cent of those questioned stated they would do so to pay off existing debts and 20 per cent would like to escape negative equity.

However, Mike Bowman, head of More Than Business, warned: “There are numerous potential pitfalls when it comes to letting a property – it’s not as simple as finding a tenant and sitting back waiting for the rent to come in.”

A recent study carried out by Churchill suggested many people in the UK may soon face costly housing repair bills as many residents are failing to adequately maintain their abodes.

By Joe White