Landlords England Pandemic

There are a large number of properties across England which are let to private tenants. In 2018 the Ministry of Housing, Communities and Local Government commissioned an English Private Landlord Survey. Some of the main findings included:

  • Most landlords operate as private individuals rather than as part of a company or organisation. 94% of landlords rent out property as an individual, 4% as part of a company and 2% as part of an organisation.
  • While almost half of landlords own just one property, half of all private rented sector tenancies are let by the 17% of landlords with five or more properties.
  • Landlords, on average, report a gross rental income of £15,000 per year (before tax and other deductions). For most landlords income from rent makes up two fifths (42%) of their total gross income.
  • Agents are more likely than landlords to increase the rent for a new tenant.
  • In most cases, landlords and agents report that it is the tenant’s choice to end a tenancy. Few tenancies end in eviction.

How The Coronavirus Pandemic Is Affecting Landlords

During the recent pandemic, the property market has changed quite drastically, and understandably so. The demand for rental properties has skyrocketed as a result of people not being able to afford to buy their own. However, landlords are feeling abandoned by the government, according to a new survey by OnePoll for The Mortgage Lender, with 64% saying they haven’t received any financial support and 52% believing they should receive future financial support. 

This year the coronavirus pandemic has caused many people to lose their jobs or face reductions in income, which has had a knock-on effect on the rental market. The government has recommended that any tenants struggling to pay their rent should speak to their landlord and arrange a temporary agreement, such as accepting a lower amount of rent for an agreed period and arranging a payback plan for a later date. There have been plenty of cases of rocky relationships between landlords and tenants as a result of missed rent payments.

From 29 August 2020 landlords are not able to start possession proceedings unless they have given their tenants 6 months’ notice. Serious cases are excluded, including those in relation to anti-social behaviour, rioting, domestic abuse, false statement and where a tenant has rent arrears valued over 6 months of rent.

What Help Is Available for Landlords in England?

In order to help Landlords through this, the Government has introduced a mortgage payment holiday for landlords whose tenants are experiencing financial difficulties due to COVID-19. This temporary measure is currently expected to end on 31 March 2021. According to the same poll mentioned above, 24% of landlords have taken the payment deferral as a precaution and 11% have taken the payment deferral out of necessity.

More recently, house viewings, where a move is scheduled to take place, were still allowed to proceed throughout the national restrictions that were in force in England until the beginning of the day on 2 December, provided these were undertaken in line with public health advice and the relevant coronavirus (COVID-19) legislation.

Landlords in England Must Be Fully Covered

In the uncertainty of the current global pandemic, having a secure and regular second income as a landlord is one of the best ways to provide yourself with the financial stability and backup that you may need. Because of this, the number of landlords looking to grow the number of properties they own has increased.

Insurance continues to be a high priority for landlords during the pandemic. There are many incidents that could occur that would result in needing to make a claim and having the correct level of cover is of utmost importance in remaining financially secure.

Ashburnham Insurance are specialist providers of Landlord Insurance in England. We can cover residential properties let to tenants, houses of multiple occupation (HMOs) and commercial let properties amongst others. Whether these buildings are a small privately-owned investment or a full-time business, we have the right cover for you. Contact us to find out more.

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