75% of landlords assisting tenants with rising cost of living
Research by retail and commercial bank, Shawbrook, suggests that three-quarters of private sector landlords have taken steps to help tenants cope, as the cost-of-living rises.
They also found that one in four landlords have frozen rental prices for the time being, while 22% have offered tenants a payment holiday.
Meanwhile, one in five landlords have lowered rents, and 19% have offered to include the cost of bills in the monthly payments. To help combat soaring energy prices, 26% of landlords were found to be taking steps to make their properties more energy efficient, such as improving insulation, installing double glazing and investing in a new boiler. Emma Cox, managing director of real estate finance at Shawbrook, commented: “In order to have a fair and sustainable rental market, it’s vital that landlords are open to supporting their tenants through hard times.
“Reducing rents or offering payment holidays will help tenants during the worst of the crisis and get them back on their feet.”
Why is this happening?
With inflation rising in line with the cost of energy, tenants across the UK are grappling with mounting bills that they were not initially prepared for. The Shawbrook study found that 85% of people living in the private rented sector, had already made lifestyle changes to cope with the higher cost of living. Many landlords will be feeling the pressures of rising inflation themselves, so they can recognise the challenges their tenants are facing.
What does this mean for landlords?
Ultimately, the decision to offer a rent freeze or payment holiday lies completely with the landlord, and will depend on their personal circumstances. The influx of those who have chosen this route will certainly have a knock-on effect for an already dwindling supply of rental stock, as tenants who have been offered help over a challenging period aren’t likely to pack up and leave any time soon. This is certain to ramp up demand, with a backlog of potential renters waiting for a property to become available. The consultation also included measures to protect renters from unfair rent increases and plans to ban ‘no fault’ evictions in the Renters Reform Bill, which will be introduced during the current parliamentary session.
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This article was originally published by BriefYourMarket and is reproduced here with their permission.
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