Rent Arrears Fears Subsiding
It has been a tough year and a half for everyone, and this has certainly been the case for landlords. At The Letting Line, we work closely with landlords, and we know the issues these professionals deal with on a daily basis.
We are pleased to say there is a growing sense of optimism amongst the letting community. While things are far from easy, there is a belief that things are improving.
Genuine cause for optimism amongst landlords
We have seen this for ourselves, and there have also been studies which suggest the rental market is improving for landlords.
A new survey of nearly 4,000 landlords from buy-to-let specialist, Sequre Property Investment, has revealed that nearly one in five (17%) have experienced rental arrears as a result of the pandemic.
Sequre Property Investment conducted a survey of close to 4,000 landlords, and the findings are of interest to landlords and property investors:
14% of respondents experienced rental arrears because of the pandemic
27% of this group have suffered one month’s rental arrears
23% of this group have experienced between one- and two-months’ rental arrears
50% of these respondents have experienced rental arrears of at least two months
There is evidence which suggests the wave of pandemic rental arrears is dropping:
36% of respondents say the level of rental arrears due to them has remained the same since the peak point of the pandemic
37% of respondents have experienced a fall in rental arrears
28% of respondents have witnessed an increase in rental arrears
Daniel Jackson, Sales Director at Sequre Property Investment, commented: “The pandemic has posed problematic for tenant and landlord alike but while the nation’s tenants have been afforded a great deal of government protection, little has been done to aid those landlords facing a backlog of unpaid rent. With the government all but blocking the ability to evict tenants who can’t pay, the only option on the table has been to sit tight and wait for this storm of rental arrears to blow over.”
Daniel Jackson continued by saying; “The good news is that many now seem to be weathering this storm and having shown faith in their tenants during hard times, the majority of landlords are now starting to have this faith repaid in the form of overdue rent. Of course, there are some tenants who are not yet out of the woods, as well as those who seek to take advantage of the system, but the rental market certainly seems to be rebounding in the right direction.”
Daniel Jackson concluded by saying; “Despite these tough times of late, as well as a string of legislative changes to buy-to-let profitability, the buy-to-let sector remains a lucrative business and continues to attract attention from the amateur landlord, right through to the institutional investor.”
If you are looking for guidance or assistance in the Enfield rental market, we can help. At The Letting Line, we are a specialist letting and property management agent serving Enfield, Barnet, Potters Bar, Brookmans Park and surrounding areas.
We can arrange a free valuation for you, and if you are looking to contact us, please call us on 020 8342 1234.