Most of us learned some lessons during the last recession. Even those of us who are seasoned and experienced landlords felt the sting of the collapse and we would all be silly not to heed the warnings we were given.
It is a rare landlord indeed that can claim to have remained untouched. If it was not a huge drop in property prices at the wrong time, it was reduced opportunity for bank funding or exposure to rental arrears as tenants hit difficulties.
There is no doubt that with demand now bigger than supply for rental properties, things are looking up for landlords but most are proceeding with caution. And that is only fitting.
As Graham Kinnear, MD at Landlord Assist points out the idea of infinite property price rises has been stripped away from us.
“Prior to the credit crunch lots of people bought in to the idea of ever increasing property values and many landlords expanded their property portfolios quickly with the assistance of excessive bank lending. However during the height of the recession many were exposed to price falls on their property, in some cases wiping out any equity they had. “
Landlords will no doubt still expand in favourable conditions but the urge to protect themselves from the inevitable down times is now much stronger. The motto seems to be full steam ahead; with caution.