Half landlords lose rental income due to Covid-19

Original Source: https://www.propertywire.com/news/half-landlords-lose-rental-income-due-to-covid-19/

Over half of private landlords have lost rental income due to the Covid-19 pandemic, research from the NRLA has found.

Some (56%) had lost rental income as a result of the pandemic, with 12% losing more than 20% of their income.

Of all those who had lost rental income, 22% had lost more than £5,000 and 59% had lost more than £1,000, with 36% saying the losses are continuing to increase.

Ben Beadle, chief executive of the NRLA said: “Although most landlords have done everything they can to help tenants affected as a result of the pandemic, we have now reached the end of what they are able to do.

“Simply continuing to ban repossessions just means that tenants struggling to pay their rent are accumulating more debt reducing the chances that they will be able to pay it off. This ultimately will put more renters at risk of losing their homes.

“Ministers need to develop a proper plan to sustain tenancies and help the rental market recover. This needs to include a financial package to enable tenants to pay off any arrears built as a direct result of the pandemic.”

Franz Doerr, chief executive at rental payments platform flatfair, said: “Landlords should not be expected to prop up the rental market yet that is exactly what has been allowed to happen.

“Mountains of unpaid rent are piling up at the feet of landlords who are powerless to do anything about it.

“The government, therefore, must act urgently to protect the long-term interests of tenants by keeping them out of inescapable debt, while ensuring landlords are being treated fairly.

“Unlike Scotland and Wales, England still hasn’t launched a tenancy loan scheme — which would provide struggling renters with a means to cover the cost of their tenancies.

“Landlords are quickly becoming fed up with the lack of support coming their way, which could ultimately give way to an exodus from the buy-to-let sector.https://e2c9941baeb5abcf19c3f66162fac09d.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

“This would be disastrous for renters, too, by depleting the number of more affordable rental properties on the market.”

Compare listings

Compare