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TODAY'S OTHER NEWS

Four in 10 tenants will struggle to pay rent, research suggests

The government is currently protecting renters from eviction as a result of enacting the Coronavirus Act 2020, ensuring that anyone struggling with rental payments due to the coronavirus can apply for a three-month payment holiday, but a new survey has laid bare the collision course set to develop between tenants and their landlords. 

The poll of more than 1,000 renters conducted by flatsharing portal ideal flatmate shows that 40% of tenants will struggle to pay rent in the coming months, which will have a knock on effect on landlords. 

According to the Office for National Statistics, those privately renting spend 34% of their gross household income on rent and with the hit to incomes being experienced by millions across the UK it is perhaps no surprise that housing payments are under threat.

The study found that not being able to keep up with rental payments was the number one concern of current tenants with the ability to pay council tax, financial instability and ‘survival’ also being cited as key areas of fear during the Covid-19 epidemic.

In addition, the study also found that 42% of tenants were keen to be able to socialise more with people on their street. 

But having a garden or some form of outside space was listed as the number one thing renters would change about their existing property.

Landlords may be alarmed at the findings of the survey, with fears that tenants will default on their rent payments in the coming months, according to Tom Gatzen, the co-founder of ideal flatmate. 

He commented: “Clearly this is a very concerning time for many renters and the findings of this study bring into focus the worries many tenants have at the moment.

“It is very important that renters get in touch with their landlords as soon as possible if they feel they may not be able to keep up with their monthly payments and we would encourage all landlords to be constructive in their conversations with any tenants who are struggling through no fault of their own during the current crisis.”

Poll: Are you worried that your tenants will default on their rent payments in the coming months?

PLACE YOUR VOTE BELOW

  • James B

    Hopefully there is plenty of guarantors on tenancies if those numbers are right !

  • Matthew Payne

    "ensuring that anyone struggling with rental payments due to the coronavirus can apply for a three-month payment holiday" I wasnt aware HMG had offered this to tenants.

    Bill Wood

    Pareidolia: People Hear What They Want to Hear.

     
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    They're saving a fortune on Costalot coffees, pub booze and restaurants whilst getting 80% of their pay for doing nothing. They'll get refunds on their cancelled foreign holidays. Why can't they still afford their rents?

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    • N P
    • 14 April 2020 20:45 PM

    Unfortunately not all employees are being furloughed when they should. Just had one tenant contact me today who has been made redundant (does not say much for his employer who is a large well known brand - and I checked, his employer are making redundancies).

     
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    4 out of 10 tenants will use coronavirus as an excuse to not pay their rent more like.

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    boris has tested negative for cv! talk is that those with negative test will remain under house arrest indefinitely

    gates wants everyone vaccinated

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    Slightly off topic but collected some coal today, good chap and has some investment properties ( residential and commercial) anyway tenant in shop, very high class expensive gentleman's clothing, 3 wks ago when he had to close announced that he would not be paying his rent, but did not want to loose his shop, this guy (the tenant) drives a Porsche, his wife drives a range rover taking the 'P' or what ? bet both cars are leased, FLASH WITH NO CASH oh isn't this going to sort the men from the boys.

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