Tough 2009 For London Landlords

London landlords should prepare for another rocky year in the lettings market, according to Kinleigh Folkard & Hayward estate agents.

The main issues that landlords should look out for in 2009 are:

1. The number of tenants registering with agents will fall over the course of 2009, as most people will not move home unless they have to. 

2. Stock is likely to increase as more would-be sellers opt to rent out their home and investors take advantage of lower-priced property, leading to a rise in the supply:demand ratio.

3. With no sign of improvement in the economic situation, more tenants will default on their monthly rent payments, says kfh, so landlords should make sure they have insurance.

4. Landlords should also be wary of an increase in the number of estate agents entering into the lettings market, particularly those who offer cut-price fees; 'You get what you pay for', warns kfh.

5. Student lets are recession-proof and will remain vibrant next year so landlords should target university areas and districts with university hospitals.

6. Flexibility is key, says kfh, and landlords who are open to negotiation on the rental price should attract tenants and skip void periods, particularly if they have well-presented properties close to transport links.