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CORONAVIRUS UPDATE

See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 283,311 | UK Deaths: 40,261 SEE MAP Italy Confirmed cases: 234,531 | Italy Deaths: 33,774 | Italy Recovered: 163,781 SEE MAP Spain Confirmed cases: 240,978 | Spain Deaths: 27,134 | Spain Recovered: 150,376 SEE MAP See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 283,311 | UK Deaths: 40,261 SEE MAP Italy Confirmed cases: 234,531 | Italy Deaths: 33,774 | Italy Recovered: 163,781 SEE MAP Spain Confirmed cases: 240,978 | Spain Deaths: 27,134 | Spain Recovered: 150,376 SEE MAP

TODAY'S OTHER NEWS

Majority of landlords and tenants ‘are concerned about rent payments’

Almost half of renters are currently worried about the impact Covid-19 could have on their living situation, while many landlords are fearful that their tenants will not be able to pay the rent, fresh insight from Opinium shows. 

Some 48% of renters are concerned about the adverse impact the existing coronavirus crisis could have on their finances and ability to pay the rent, among other expenses. 

Two fifths - 43% - of renters whose work has been impacted by the outbreak report that they are already struggling to pay rent, bills or for other essentials, with almost a quarter - 24% - of tenants whose employment has changed having already dipped into their savings to get by. 

James Endersby, CEO at Opinium, commented: “Our research shows that renters are finding it particularly tough. Many have found their employment situation has changed, but their rental payments still remain, and this is already becoming a struggle for some.”

Somewhat worryingly, one in six renters - 17% - are seeking financial help, and so it is unsurprising to find that the majority of landlords are now concerned. 

Some 73% of landlords are concerned that their tenants will not be able to pay their rent in the coming months, while 70% fear that they will vacate and leave the property empty. 

David Cox, chief executive, ARLA Propertymark, said: “It’s worrying to see that the vast majority of renters and landlords are concerned about rent payments. Unfortunately, as the Covid-19 pandemic continues, more people may see changes in their income which could leave them stressed about affording rent whilst providing for themselves and their families.

“However, there is lots of government support available that should allow tenants to continue to pay their rent and landlords to have an income if rent payments do stop. 

“Clearly not enough is being done to explain and highlight these policies, but we would urge everyone to look into these and understand what help they may be eligible for. Both renters and landlords should take full advantage of the government schemes available during this difficult period.”

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

PLACE YOUR VOTE BELOW

  • Mark Wilson

    Majority of landlords and tenants ‘are concerned about rent payments’ I know sites like this need content, and I am one of a handful of readers and a fewer number who comment, but what is this article saying? Nothing at all!!!

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    It seems that there is no gov support for landlords with empty property awaiting rental. Still have to pay the full wack of council tax even though a single occupant would get a 25% discount in Luton. Have to pay full management charges despite no income. Don’t really want to take a mortgage break as will take ages to recover. Is there any other gov help if you are not a company but a private renter?

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  • Paul Barrett

    @seb
    You make very good points.
    Very few LL even consider the issues which may or may not arise and certainly they don't factor it into their business model.
    If they did few would even bother becoming a leveraged LL.

    It is clear that the only LL that are really vulnerable are leveraged ones.

    It must make business sense for leveraged LL to assess their viability based on their current levels of leverage.
    That is where the main business risk is for LL.
    Yes there are loads of other issues which can mitigate against LL viability but they ALL pale into insignificance compared with inability to service BTL or LTB mortgage payments.
    There is of course an unique difference to being a leveraged LL or an unencumbered one.
    It is the leveraged LL that are at most risk.
    It seems very few leveraged LL have any strategy to deal with lack of rent to service mortgage payments.

    This just highlights how BTL is a VERY risky business model.
    I know I never factored in all the things you mention LL should.

    Given my time again rather than buying 5 properties on BTL mortgages I would now purchase only one property.
    That property would be unencumbered.
    In the event rent wasn't paid it really wouldn't be an issue.
    Yes there would some costs still to be borne by me.
    But bankruptcy would never be an issue to be faced.
    Very few leveraged LL could service mortgage payments for a year on even one property if rent isn't paid.

    As such those LL will need to seriously consider their position.
    Being a leveraged LL has now been exposed as a highly risky proposition.
    As such I have belatedly recognised this vulnerability and fully intend to cease being a leveraged LL.
    This I intend to do as profitably as possible.
    This might take some time!!!
    I can make as much net income out of one property with no risk of bankruptcy .
    Yes I lose out on potential CG across 5 properties which is what I was hoping for.
    Fat chance of that for the next 5 years at least!
    My appetite for BTL risk has been well and truly quenched!!!
    If occupants default on rent for one unencumbered property; no big deal.
    Very annoying of course.
    Would just have to put off that holiday to the Maldives!

    I believe many LL will come to the same conclusions as me.

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