Lost Rents Could Cost Btl Landlords £15bn
Landlords across the UK face losing up to £15bn in lost rent because of the Coronavirus pandemic, research reveals.
The findings from Ome, a deposit replacement scheme, reveal that should landlords have a tenant who cannot pay rent for three months, then this could deliver a devastating blow to the sector.
The researchers reveal that the cost to landlords would be £14.9bn following moves by the Government to provide three months of support to tenants. This will include:
· All new possessions proceedings to be halted in the courts
· All new evictions will be suspended.
The firm says that the private rental sector is home to 5.2 million properties and without the capacity to work and to pay rent, then landlords will face a loss amounting every month to £4.97bn.
That figure is based on tenants paying £955 as an average monthly rent.
Landlords in London face losing the most money
Landlords in London face losing the most money with a potential £4.9bn drop in income over three months.
And with 2.6 million landlords having a portfolio of two rental properties in the UK's buy to let sector means they are facing even greater losses.
The firm's co-founder, Matthew Hooker, said: "It's great the government is providing some financial respite for landlords. However, landlords still face having no rental income but having to pay their buy to let mortgage costs.
"It's not the tenant's fault if they are cannot pay, but landlords could turn to rent deposits at the tenancy's end to recoup lost rent."
He added that this would be an unfair move on their tenant who may have kept the property in good order, but the situation may leave a landlord with little or no choice but to do so.
Mr Hooker said: "Hopefully, every tenant will be able to pay rent so the lost rental sum should reduce but the rental sector in the UK is in for a few tough months."
Just 4% of landlords allow pets
Meanwhile, it's been revealed that just 4% of landlords in the UK will allow their tenants to keep pets.
The research from CIA Landlord found the worst location for tenant pet lovers is Leeds, where just 1% of listed properties were ‘pet friendly’.
Leeds is followed by Cardiff, Newcastle, Coventry and Birmingham.
Researchers found that 39% landlords were wary about pets when letting to tenants, with 35% of landlords saying they worried about pets who are not 'properly trained'.
A spokesman for the firm said there were advantages and disadvantages for a landlord to allow pets in the property, but they should consider fully "all aspects before deciding what's best for the property and you".