Landlords are absorbing losses from their savings

Landlords are absorbing losses from their savings

11:10 AM, 5th November 2021, About 4 weeks ago 4

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The majority of private landlords helping tenants out during the pandemic by cutting their rent absorbed the losses from their savings according to new research.

The research conducted by BVA/BDRC for the National Residential Landlords Association shows that sixty-one per cent of those landlords who, in the second quarter of the year, had offered at least one tenant a rent-free or deferred rent period absorbed the losses from their savings.

With recent YouGov figures suggesting that 61% of landlords rent out just one property, and 34% are retired with rental income representing all or part of their pension, the NRLA is warning that reliance on landlord savings is not sustainable in supporting tenants facing rent problems.

Government data shows that in April-May this year, seven per cent of tenants in England, almost 800,000, were behind with their rent. This was more than double the number who said they were in arrears in 2019/20, before lockdown measures started.

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

“These figures show the extent to which landlords have worked to sustain tenancies as a result of the pandemic, many at the expense of their retirement savings. But this cannot continue indefinitely.

“After months of calling on the Government to help tenants who through no fault of theirs got behind with their rent, we have welcomed the funding now made available to help those affected to pay off COVID rent debts.

“It is now vital that councils ensure tenants who need it can access the funding swiftly. Without this, landlords will be left between a rock and a hard place either expected to sustain rent arrears they cannot afford or to repossess their properties, neither of which we want to see.”



Comments

by Bristol Landlord

17:11 PM, 5th November 2021, About 4 weeks ago

The first thing I noticed about the report is that it says the situation “cannot continue indefinitely” but nowhere does it say that for landlords it is actually unfair?

by moneymanager

10:10 AM, 6th November 2021, About 4 weeks ago

"“It is now vital that councils ensure tenants who need it can access the funding swiftly. Without this, landlords will be left between a rock and a hard place
**either expected to sustain rent arrears they cannot afford**
or to repossess their properties, neither of which we want to see.”"
I have news for Mr Beadle, NO level of rent arrears is affordable at any time and as not only been funded from savings but also from an increase in debt by the disgustingly euphemistic "mortgage holiday", as with all holiday bought on tick the credit card bites back eventually.
We thankfully have not had the problem of non paying tenants but with a preponderance of international students and mobile professionals losing their placements we had huge void periods which has since us rack up massive Council Tax arrears with the threat of Court action, now deferred over time it' still a real kicker.
As for the role of the NRLA and re Mr Beadle
"The parish Beadle did not just lead the way to Sunday school or cane wayward and misbehaving youths, as he also had a duty to maintain law and order within the parish and to resolve squabbles between neighbors."
perhaps we just "wayward" and need to be controlled on our way to the parish poor house?

by NewYorkie

16:29 PM, 9th November 2021, About 3 weeks ago

The tone of all NRLA comments is almost apologetic... 'so sorry landlords can't afford to house tenants for free for much longer... your ever so 'umble servant, Ben Beadle!'. Surely, this research gives you the ammunition to tell it as it is, and state what the implications will be. Shelter does it all the time.

by Accommodation Provider

9:38 AM, 13th November 2021, About 3 weeks ago

It is theft by tenants of landlords. Why is this illegal and wrong behaviour being normalized ? Why does the NRLA communicate so wrongly, damagingly and pathetically ? Everyone and their dog was given money as a present but not landlords who were the only and glaring exception and 70 billion pounds was stolen by fraudsters. Landlords perform the essential service of providing a roof over people's heads. And have been systematically robbed by the government, discriminated by the government, overtaxed for over a decade now. Enough is enough ! Wake up pathetic NRLA. We all know of government deliberately misinforming during the pandemic about "mortgage holidays" which do not actually exist but led tenants to withhold rent. We all know tenants were getting furlough, earning cash, and not paying rent. They loved the triple whammy ! And the mainstream media joins in with the landlord bashing. When everyone should be woken up to the real problem, the elephant in the room which is there are not enough houses being built ! Simple truth of supply and demand. Unfixeable as no hands available to build them as kicked out by brexit benefits beggars headed by blonde clown who is economics illiterate, visionlessly living on popularity daily hand to mouth, not thinking about or understanding or planning for tomorrow. Blonde clown broke and living on benefits himself. Time to emigrate. Pendulum swinging to ridiculous warped woke society collapsing sleepwalking off cliff idiocy.


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