New data from a survey of 1,200 landlords has revealed that, since the start of lockdown in March, 43% of landlords have been contacted by their tenants to say they will struggle to pay rent and only 49% of landlords have received full rent payments.
According to the research by Hamilton Fraser, 27% have received 75% or more of rent, 9% have received 50% or less and 15% have received nothing at all.
Of those that landlords who have been contacted by their tenants regarding rent payments, 75% have agreed a payment plan, such as a rent reduction or payment holiday.
However, six months on from the start of the pandemic, and with little end in sight, it is clear that landlord confidence is starting to wane, with many unable to continue supporting tenants in the long term and 23% considering selling a property before the end of the stamp duty holiday on 31 March 2021.
Paul Shamplina, Brand Ambassador for Hamilton Fraser said, “Given the severity of the circumstances and rising unemployment, it’s no surprise that more than 50% of tenants have been unable to pay their rent in full or at all. However, it is clear that the vast majority of landlords have done everything they can to offer support and sustain tenancies. The question is how long can that last for?
“Many landlords are also struggling financially, owing to reduced or loss of employment, and simply don’t have the means to subsidise rents, that they rely on, indefinitely. What is most concerning, is that the true scale of rent arrears and impact of the last six months will not be realised until the end of the furlough scheme in October.”
