9:59 AM, 3rd August 2021, About 2 years ago 1
A survey of Shawbrook bank customers revealed that 46% of their landlords reduced their rents to assist tenants during the pandemic. This is made up of 28% of Landlords who gave a full payment holiday for an average 3 months and 18% who gave an agreed rent reduction over an average period of 4 months.
The average cost to these landlords who included portfolio landlords giving discounts and holidays on multiple properties was between £6,500 and £7,500.
Shawbrook Bank surveyed 1,000 landlords of which 150 were portfolio landlords and 1,000 private tenants.
John Eastgate, MD of property finance at Shawbrook Bank, said: “No amount of foresight could have prepared landlords, or tenants, for the impact of the pandemic.
“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.”