Landlords lose rent due to COVID-19

Recent polling reveals that 22 per cent or almost a quarter of private landlords have lost rental income due to COVID-19. According to the NRLA or the National Residential Landlord Association, private landlords with properties in England have been severely affected by the pandemic.

The study was done by YouGov for the NRLA. It revealed that due to the pandemic, 19 per cent of responders lost up to half of their usual rent income. The same results also show that three per cent lost more than half of their income.

Landlords who have lost income reported their losses, the numbers average between £751 and £1,000. The NRLA took this data and computed the total rental income lost by private landlords. Those with properties in England would have lost between £328m and £437m because of COVID.

In the same survey, landlords were asked their standing in the market. Nine per cent say they are planning to leave the market completely. Another 7 per cent responded that they are planning to sell some of their properties in the next 12 months. This move alarmed the NRLA. Considering those struggling to buy their own homes, lesser landlords would affect the supply of private rentable homes.

The poll results also show that 34 per cent of the landlords are retired and are using rental income as revenue. The NRLA believe that it is not sustainable for the government to expect landlords and tenants to build up rent arrears indefinitely.

Ben Beadle, Chief Executive of the NRLA says: "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.

"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."

You may read the full news from the NRLA, here.