Some 46 per cent of landlords reduced monthly rent payments for their tenants because of the pandemic, according to research from Shawbrook Bank.
In total, 28 per cent of landlords gave their tenants a full rent payment holiday - a period of up to three months where tenants were not liable to pay any rent.
Additionally, 18 per cent offered a rent reduction; a period where tenants paid a lower level of rent as agreed with their landlord.
On average, rental payment holidays lasted for three months, compared to rent reductions which lasted four months.
Those landlords that gave their tenants a payment holiday estimate they lost £7,500 on average, in comparison rent holidays cost landlords £6,500 on average.
When asked about how the agreement had come about, more than a third of landlords who gave a form of rent reduction said that they proactively offered it to their tenant, while a further 45 per cent said it was a mutual decision.
Concerns around furlough, job security and redundancy were all common reasons why a rent reduction or payment holiday were suggested.
Portfolio landlords – those owning four or more properties - were more likely to have agreed a rent reduction with their tenants compared to single property landlords; some 17 per cent of portfolio landlords admitted to missing out on income compared to just 12 per cent of single property landlords.
Fifty nine per cent of landlords who gave rent reductions did this for more than one of their properties.
Shawbrook Bank surveyed 1,000 landlords, including 150 portfolio landlords, and 1,000 private tenants on their property portfolio and rental situation respectively.
“No amount of foresight could have prepared landlords, or tenants, for the impact of the pandemic” explains John Eastgate, managing director of Property Finance at Shawbrook Bank.
“During this incredibly difficult period, landlords acted pragmatically, recognising the additional strain their tenants were under. In fact, in many cases landlords were initiating the conversation around cutting rents to ease their financial burden.
“This period has clearly underlined the critically important role that the private rental sector is playing, and will continue to play, in the UK housing market. Responsible landlords have shown their reliability during a crisis, understanding the changing needs of their tenants and acting quickly.
“Solid fundamentals will underpin the market going forward, landlords and investors should look to a positive future. There is a strong argument to suggest that landlords in regional locations have never been in a better position to profit, while city centres will continue to represent good value as workers head back to the office, even if it is on a part-time basis.”
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.