| Growing numbers of landlords are choosing not to increase rents in a bid to
help their tenants financially because of the Covid-19 lockdown, it has
been revealed.
According to Arla Propertymark, the proportion of rent increases being
imposed on tenants fell during May to 14%, which is the lowest level ever
recorded.
This follows February's figure when 40% of letting agents and landlords put
rents up before the lockdown was initiated.
The latest figure for May is also a big jump on the numbers for May 2019,
which saw 45% of tenants seeing rent increases.
Also, the research reveals that tenants are increasingly successful when
asking their landlord for a reduction in rent.
Tenants who have successfully negotiated a rent reduction
Arla says that the number of tenants who have successfully negotiated a
rent reduction grew to 2.5%, that's the highest figure since March 2019
when 2.9% of tenants were successful.
However, the Covid-19 lockdown, which prevented landlords from showing
tenants around properties meant that void periods have increased to five
weeks.
That's the longest time that a property has remained empty between
tenancies since records began.
Also, the number of managed properties per branch increased to 208, which
is slightly higher than the pre-lockdown figure of 201 per branch.
'Landlords have taken the brunt of the pandemic'
Arla's chief executive, David Cox, said: "Our figures show that agents and
landlords have taken the brunt of the pandemic.
"They are aware of financial difficulties and are showing tenants empathy
and many landlords are not increasing rent where they might have otherwise
needed to."
He added that all parties in the rental sector need to ‘keep the rent
flowing’ in a bid to sustain the market and help boost the economy.
Arla members manage 47% of rental properties
Meanwhile, it has been revealed that 47% of rental properties are being
managed by Arla Propertymark members.
The figure comes from the English Housing Survey which shows there are 4.8
million private rented homes currently.
The data is compiled by the Ministry of Housing, Communities and Local
Government (MHCLG) and since Arla has 10,219 branches with an average of
221 properties per branch in England means they are managing around 47% of
homes in the private rental sector.
Mr Cox said: “It is encouraging to see a large proportion of the sector
seeking professional standards and greater regulation than the law
demands.”
|
