30% of landlords may sell and only 16% may buy in the coming year

by Property 118

9:58 AM, 12th October 2020
About A week ago

30% of landlords may sell and only 16% may buy in the coming year

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30% of landlords may sell and only 16% may buy in the coming year

The latest NRL A survey in England and Wales indicates the majority of landlords expect their rental business to be negatively impacted by the COVID-19 pandemic. The survey of just over 2,000 members found that 48% felt they would face a ‘slightly’ negative impact to their business as a result of the pandemic and 18% said they would face a ‘significant’ negative impact.

This has caused landlord confidence to fall with 56% saying that they were less, or much less, confident of being able to achieve their goals over the next year compared to three months ago.

Concerns over the impact the pandemic are affecting investment decisions being made by landlords. Whilst 16% of those surveyed said they planned to purchase at least one or more properties over the next year, 30% said they intend to sell one or more properties.

The likely fall in the supply of rental homes comes as the survey found that 35% of respondents reported that over the previous three months they had seen an increase in demand for private rented housing.

With a previous analysis by the NRLA having suggested that total private sector rent arrears as a result of the COVID-19 pandemic in England could be up to £437 million, landlords are calling on the Government to help sustain tenancies by providing the finances needed to pay off COVID related arrears.

Following similar schemes developed in Spain, Wales and Scotland, the NRLA is calling for tenants in England to be able to access hardship loans to cover such arrears. This would see loans available interest free and guaranteed by the Government specifically to cover unpaid rents since lockdown measures began in March. Payments would be made directly to the landlord.

The NRLA’s survey has found that 78% of respondents supported such a scheme. It has the support also, among others, of Lord Best, the former Chief Executive of the Joseph Rowntree Foundation, who has said of it: “The landlord is happy, the cost to government is very modest and to the tenant, bearable.”

Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Whilst the vast majority of landlords have been working constructively with their tenants where they have struggled due to the pandemic, it is not sustainable to expect them or tenants to continue having rent arrears building indefinitely. This is highlighted in the lower levels of confidence among landlords and the impact it is having on their businesses.

“Providing the financial support needed to help tenants pay off rent arrears built since lockdown started would cost the Government less than the Eat Out to Help Out scheme. As we head into more local lockdowns, it is even more important that tenants don’t have to worry about meeting their rent bill.”


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Comments

Mark Alexander

11:35 AM, 12th October 2020
About A week ago

The 16% who intend to buy need to seriously consider a Smart Property Company structure https://www.property118.com/tax/smart-property-company-structures/

TrevL

12:47 PM, 12th October 2020
About A week ago

The 16% who intend to buy need their head examining.

Mick Roberts

12:51 PM, 12th October 2020
About A week ago

Mark says it perfectly.
Ha Ha and so does Trev.
Brilliant by the pair of u.

Newbies han't got a clue the obstacles now gonna' face 'em.
EPC rating C will be one big blow for tenants. Landlords initially, but we all know tenants will suffer if that comes in, in 2025.

LaLo

17:01 PM, 12th October 2020
About A week ago

I've already sold one and can any explain why 'flats' never seem to hold their value?

Mick Roberts

17:18 PM, 12th October 2020
About A week ago

Reply to the comment left by LaLo at 12/10/2020 - 17:01
My flats in Nottingham are going up, party cause of Selective Licensing & the demand.
Maybe if not bought at the right price to start with.

Richie

23:39 PM, 12th October 2020
About A week ago

Reply to the comment left by LaLo at 12/10/2020 - 17:01
Partly because of the cost of Maintenance charges that keep on rising with no real reason, These maintenance companies are leaching off from the lease holder for almost no service.
Compare the maintenance cost of a freehold property to that of a leasehold of the same size: If they were the same price to buy which one would you buy ?


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