9th
Mar 2021
A recent major survey of agents, landlords, and tenants paints the picture that rental arrears incurred because of the pandemic, are not as serious as portrayed by all and sundry.
The survey, was carried out on behalf of a rental deposit and deposit replacement companies with more than 14,200 agents, landlords and renters.
The survey referred to landlord tenant relationships and how changes have affected the parties such as ever-increasing regulations, government support and the real impact of Covid.
According to many media stories the UK is suffering from large-scale rent arrears, however the survey found that 95% of renters said they had not fallen behind with their rent because of the pandemic.
Those who are finding it very difficult 58% reported that their landlord had been very helpful and supportive and 31% said their landlord had offered a rent holiday or a reduction on rent, whilst 31% of agents and landlords stated their tenants had rental arrears because of the pandemic.
Agents and landlords agreed that the highest issues they have to or may have to contend with are rent arrears along with the rise in regulations and legislation.
The survey also found that the majority of tenants gave a score of 7.4 out of 10 for their landlord relationship. The majority of agents and landlords were highly positive about their relationship with their tenants as 60% gave them a score of nine or ten out of ten.
80% of landlord respondents have been in the PRS for 5 years plus and 65% have made their feelings known as far as they are concerned the sector has become far worse because of the amount of red tape, negative changes to their tax, and ever-increasing legislation and regulations.
Because of those reasons 90% of landlords feel they have been massively let down by the government and in spite of this 79% will remain as landlords for the next five years.
Tenants’ views on whether their rent is good value are virtually 50/50.
49% say that their rent is far too much as it is more expensive than a mortgage and making it impossible for them to save, many have no other option than to rent as they do not have funds to buy their own home.
Whilst 51% of tenants state their rent is worthwhile as they do not have to carry out any maintence issues and can move to wherever they wish to at the end of their tenancy, and 75% of agents and landlords who also think their rent is value for money.
However 67% of tenants believe that in the long term they will one day be able to buy their own home.
Richard Merrick of PIMS says: “Although the media coverage and various anti-landlord campaign groups are stating that the situation is catastrophic however it may not be as bad as they make out, but try telling the many landlords who are in effect paying for their tenants to live in their properties.”
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