Covid problems causing landlords to sell up

Covid has made the rented property availability crisis worse, the National Residential Landlords Association has concluded.

Surprisingly, only one in four private landlords faced rental income losses as a result of the Coronavirus crisis, according to a survey conducted by YouGov for the NRLA between March 2020 and September 2021. However, those landlords affected now say they are almost twice as likely to sell property as those who were not.

One in ten of those who had lost income had negotiated rent reductions and temporary suspensions of rent payments with some of their tenants. One in 12 had major issues with unpaid rents and one in 25 had experienced an increase in empty properties during the pandemic.

Amongst those who said they had lost rental income, over a half (54 per cent) said they had lost up to a fifth of their income across their portfolio. Five per cent reported that they have lost more than half of their rental income.

‘The figures show that 36 per cent of the landlords who lost rental income as a result of the pandemic said they planned to either exit the market completely or sell a portion of their portfolio, further exacerbating the supply crisis which many analysts agree is hurting tenants’, said NRLA.

‘This is further proof of the need to help tenants get COVID related rent debts paid off to keep landlords in the market and tenants in their homes.
With the Government having last year made funding available for councils in England to help tenants pay off Covid related rent arrears, local authorities need to ensure money reaches the pockets of affected tenants as swiftly as possible’.