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PropTech firm says “powerless” landlords expected to prop up rental market

A PropTech firm says it’s wrong that landlords are expected to prop up the rental market during the pandemic in the wake off mounting arrears and other challenges.

Franz Doerr, chief executive at rental payments platform flatair, says: “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.”

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In recent days the National Residential Landlords Association produced figures showing that over 50 per cent of private landlords have lost rental income as a result of the pandemic.

A third of landlords have also indicated they were now more likely to either leave the market entirely or sell some properties.

The NRLA’s survey for the fourth quarter of last year found 56 per cent had lost rental income, with 12 per cent having lost more than 20 per cent of that income.

Of those who lost income, 22 per cent lost over £5,000 and 59 per cent lost in excess of £1,000. Meanwhile 36 per cent said their losses were still increasing.

Of those losing non-rental income as well, 41 per cent lost over £1,000 and 20 per cent losing over £5,000.

Flatfair’s Frank Doerr continues: “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. This would be disastrous for renters, too, by depleting the number of more affordable rental properties on the market. 

“Communication between both landlord and tenant is key during these uncertain times, and renters who are worried that they may soon find themselves in financial distress should let their landlord know as soon as possible. 

“Engaging early gives both parties the time to come up with a solution and, more often than not, landlords will be willing to work with you in coming up with a more flexible repayment plan if you are upfront and honest about your issues.”

  • George Dawes

    If my various properties don't rent by April = with the new tax year looming and the possible re introduction of biz rate and a property tax / wealth tax , I'm selling up and most probably leaving this hell hole of a joke country

    Thanks Boris and your team of incompetent corrupt toerags , and Kier you ain't much better ( arguably worse ) for ruining the economy over a virus with a 98.5% survival rate . Covid isn't SARS , Bird Flu or Ebola , it's not even as bad as seasonal flu !!!

    We all know now who's in charge and it ain't the puppet politicians .

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    Wow, what a tirade, George. Maybe it's best to contribute to this site when you're less angry.

  • George Dawes

    Perhaps you’d like to put me on ignore , save me responding to your inane moronic drivel ?

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    George how do you do ignore function on this. There’s one or two wind up merchants/parasite to the LL this would apply to

     
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    Is David wirth a landlord or a tenant who doesn’t pay rent?

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    A very good question Lia, I would lay money on the latter .

  • Keith  Johnson

    A political ticking time bomb, just wait until the eviction ban is over.....I will not let a property unless I get a AAA guarantor, and good references, rather leave the property empty

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    The government and councils are going to have one hell of a problem with mass homelessness, at present they are just kicking that can down the road, but it's going to happen, prospective tenants that cannot tick all the boxes will be out in the cold, very few landlords will be taking any risks with dodgy tenants now, and responsibility lays firmly at the door of number ten.

     
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