Rules warning for "accidental landlords"

09/04/2009

Many of Britain's "accidental landlords" are breaking rules governing mortgages, a property firm has said.

Paragon Mortgages analysis reveals a trend for homeowners giving up on trying to sell their properties in the financial downturn and renting them out themselves.

House prices have fallen by around 15 per cent, year on year, in the UK due to the credit crunch.

Mortgage approvals also dropped by 30 per cent in the same period according to latest Bank of England figures.

Paragon said that the accidental landlords were, in the main, unaware of the 50 parliamentary Acts and 70 sets of regulatory guidelines that govern private landlords.

John Heron, managing director of the company, commented: "The onus is on the landlord to make sure they comply with all regulations and they are liable if something goes wrong, even if they employ the services of a letting or managing agent.

"Ignorance of legislation is not a defence."

Mr Heron also said that many homeowners were in violation of their own mortgage agreements if they decided to rent their properties out to tenants.

The renters themselves could face sudden eviction if the deception was uncovered by lenders.

Tags; Housing Debt and Bills, Young Family Finances,

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