CORONAVIRUS IMPACTING RENTAL INCOME

11th October 2020
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It is true to say the COVID-19 pandemic has significantly impacted the rental market. Landlords and tenants face significant challenges, and there is a need for all parties to work together, and sensibly, at these times.

 

At Bluestone Properties, we are on hand to support landlords in South London. If you require any help or guidance, we can assist you. We stay in touch with what is happening locally, and we follow the latest market research.

 

When it comes to making an informed decision, we will provide you with the support you need.

 
 
Many landlords have lost rental income because of the pandemic
 

In a survey conducted by YouGov for the National Residential Landlords Association (NRLA), 22% of private landlords admitted to losing rental income due to COVID-19. 19% of respondents said they lost up to half of their usual rental income and 3% had lost more than of their rental income.

 

NRLA studies suggest the average loss for landlords was between £751 and £1,000. Applying this figure across the industry suggests private landlords in England have lost between £328m and £437m because of the COVID-19 pandemic.

 

According to the survey, 9% of landlords say they intend on leaving market completely, and 7% of respondents say they will reduce their rental property portfolio in the next 12 months.

 

With demand for rental property unlikely to diminish, there is an opportunity for Tooting landlords. With the stamp duty holiday in place, there is a chance for existing landlords to expand their property portfolio, and for new landlords to enter the market, in a more affordable manner.

 

If you are interested in the South London rental market, please contact Bluestone Properties today.

 
 
Calls for support for landlords are growing
 

The NRLA therefore states it is unsustainable for landlords to allow tenants to allow rent arrears to continue indefinitely. The NRLA is calling for the Government to do more to support landlords and tenants in this challenging time.

 

There has been work carried out in Wales and Scotland that many professionals in England would like to see replicated in England.

 

Ben Beadle is the Chief Executive of the National Residential Landlords Association, and he said; “Where COVID-19 has caused difficulties for tenants, the vast majority of landlords have reached agreements with them to avoid problems. That said, most landlords are not property tycoons and cannot be expected to go indefinitely without any or only part of the rent they are owed.”

 

Ben continued by saying; “To date there has been no direct financial support for the rental market, with individual landlords unable to access small business grants or bounce back loans. The furlough scheme is due to end, benefits do not cover average rents in any given area and the mortgage deferral scheme only builds up the amount landlords have to pay for the remainder of the term of their mortgage. The Government needs to step in and ensure tenants and landlords in England have the same level of support being provided in Scotland and Wales to pay off rent arrears and sustain tenancies.”

 

Bluestone Properties
We are a professional and friendly letting agents in south London. We provide an efficient and effective service to our clients, which includes a free valuation of your property, rent collection and maintenance. Please contact Bluestone Properties today by calling us on 0208 355 3405, emailing us at info@bluestoneproperties.co.uk


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