Over half of private landlords have lost rental income as a result of the COVID-19 pandemic new research revealed.
Interim findings from the National Residential Landlords Association’s survey for the fourth quarter of 2020 showed that 56% of landlords lost rental income as a result of the pandemic, with 12% having lost more than 20% of that income.
A third of landlords have also indicated that they were now more likely to either leave the market entirely or sell some of their properties.
Of all those who had lost rental income, 22% had lost more than £5,000 ($6,827) and 59% had lost more than £1,000. Around 36% said that the losses are continuing to increase.
The findings show also that 26% of respondents had lost non-rental income because of the pandemic.
Ben Beadle, CEO of the National Residential Landlords Association urged UK ministers to develop a proper plan to sustain tenancies and help the rental market recover, including a financial package to enable tenants to pay off any arrears built as a direct result of the pandemic.
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“Simply continuing to ban repossessions just means that tenants struggling to pay their rent are accumulating more debt reducing the chances that they will be able to pay it off. This ultimately will put more renters at risk of losing their homes,” he noted.
More than 800,000 private renters in England and Wales have built rent arrears since lockdown measures began, with average arrears between £251 and £500, a report revealed earlier this month.
Younger people are most likely to have been affected, with 14% of renters aged 18 to 24 and 10% of those aged 25 to 34 having built arrears since March.
Independent British think tank The Resolution Foundation revealed that private and social renters are bearing the cost of redundancies during the coronavirus recession, warning that more are likely to fall behind with housing costs than people with a mortgage.
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