Change of mindset for the accidental landlords

Estate agency Cluttons has conducted a study amongst residential landlords to find out if and how their strategies have altered since the summer.

Cluttons found that the "accidental" landlords who rented out their properties over the summer when they failed to sell are now realising there won't be an imminent increase in property values, and as such are revisiting the sales market.

The report says: "Thousands of vendors found they were unable to sell their property over the summer and opted to rent it out in the short term, in the hope that the market would recover in a few months and they would achieve close to the peak prices of 2007.

"However, reality has now sunk in and sellers are accepting that the market is not experiencing a short term dip, but a longer term house price correction, which has seen prices fall by approximately 25 percent from their peak."

BDI Home Finders, a buying agent for residential property across London and the South East of England, reports similar findings. The company has experienced a surge in enquiries from potential buyers since the interest rate drop. Most prospective buyers are living in temporary rented accommodation and have spare cash in the bank from previous sales.

Both agencies concluded that there are opportunities for both buyers and sellers if a mutually satisfactory price can be agreed.