We’ve all been affected by the COVID-19 pandemic, but it is fair to say landlords have been significantly affected. Not only must landlords deal with personal financial pressures, they often have to assist tenants manage their financial situation.
This is difficult, but at Andrew Lees, we are here to help. We know many landlords are looking for guidance in how to manage their rental property, and support tenants.
We stay in touch with national studies
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.
These findings will leave many landlords reviewing their options. Of course, the demand for rental property will not diminish. With stamp duty holiday measures in place, some landlords will enhance their rental property portfolio this year.
No matter what changes you are considering, we are here to help you.
Rental income is crucial for many people and households
The survey suggests 61% of landlords only hold one rental property, and within this group, 34% of respondents say they are retired. Therefore, rental income represents all or a significant part of their pension.
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.”
As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.