There is no denying the COVID-19 pandemic has significantly impacted landlords and the rental market. Not only must landlords consider their personal finances and business finances, they should pay attention to the financial pressure tenants face.
At Thomas Morris, we have branches across the country. This helps us understand what landlords and tenants want and need. We also stay in touch with the latest studies and research in the housing market.
Many landlords are losing rental income
In a survey conducted by YouGov for the National Residential Landlords Association (NRLA), 22% of private landlords admitted to losing rental income due to COVID-19. 19% of respondents said they lost up to half of their usual rental income and 3% had lost more than of their rental income.
NRLA studies suggest the average loss for landlords was between £751 and £1,000. Applying this figure across the industry suggests private landlords in England have lost between £328m and £437m because of the COVID-19 pandemic.
According to the survey, 9% of landlords say they intend on leaving market completely, and 7% of respondents say they will reduce their rental property portfolio in the next 12 months.
More help is needed for landlords
The NRLA therefore states it is unsustainable for landlords to allow tenants to allow rent arrears to continue indefinitely. The NRLA is calling for the Government to do more to support landlords and tenants in this challenging time.
There has been work carried out in Wales and Scotland that many professionals in England would like to see replicated in England.
Ben Beadle is the Chief Executive of the National Residential Landlords Association, and he said; “Where COVID-19 has caused difficulties for tenants, the vast majority of landlords have reached agreements with them to avoid problems. That said, most landlords are not property tycoons and cannot be expected to go indefinitely without any or only part of the rent they are owed.”
Ben continued by saying; “To date there has been no direct financial support for the rental market, with individual landlords unable to access small business grants or bounce back loans. The furlough scheme is due to end, benefits do not cover average rents in any given area and the mortgage deferral scheme only builds up the amount landlords have to pay for the remainder of the term of their mortgage. The Government needs to step in and ensure tenants and landlords in England have the same level of support being provided in Scotland and Wales to pay off rent arrears and sustain tenancies.”
“At Thomas Morris, we know many landlords face many challenges because of the COVID-19 pandemic”, said Thomas Morris Royston Branch Robert Arnold. “If you are keen to learn how you can satisfy your tenants, please get in touch and we will be more than happy to talk you through the process.”
If you are looking for help with any matter of the rental market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively or you can phone our Royston branch on 01763 243331.