Landlords are justified in their calls for a rent arrears loan scheme in England as research shows that confidence within the sector is plummeting, it has been claimed.

A survey of over 2,000 landlords by the NRLA has revealed that two thirds believe they face a tougher operating environment as the economic affects of Covid hits the private rental sector, with 18% saying this was likely to be severe.

Consequently, 56% said they were less confident about the future compared to three months ago, particularly when it came to achieving their goals.

And 30% now say they want to sell one or more of their properties compared to 16% who expect to expand their portfolios.

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Rent arrears

Given the mounting financial pressure on both tenants and landlords alike, the NRLA has once again said Ministers should follow their Welsh and Scottish counterparts and introduce low-interest loans for the most vulnerable tenants, paid direct to their landlord, to help them repay significant rent arrears.

The NRLA’s says 78 per cent of landlords would support such a scheme and one of the UK’s leading housing campaigners Lord Best has said the cost would be negligible to the government.

Ben Beadle, Chief Executive of the NRLA says: “Providing the financial support needed to help tenants pay off rent arrears built since lockdown started would cost the government less than the Eat Out to Help Out scheme.

“As we head into more local lockdowns, it is even more important that tenants don’t have to worry about meeting their rent bill.”

Read more about risks of being a landlord.

4 COMMENTS

  1. Looks like we’re heading for another equity market crash, followed by more money printing.
    Like other hard assets, real estate and property will hold its value against a falling currency.
    But how much wealth will the government allow landlords (or even wealthier owner occupiers) to keep?
    UK property is an easy target for the tax man.
    Easier than multinational equities, which have treaties with foreign governments over taxation and confiscation etc.

  2. I have received A response from the government, obviously written with no idea of the reality of the situation for many landlords regarding the circumstances many landlords find themselves in regarding tenants not paying rent with the government conniving with them to use the PRS as providers of free accommodation.

    I have replied, Thank you for your reply, it’s obvious however from reading it that all you are writing of is theoretical, it is clear you have nil experience of what is actually happening on the ground in many thousands of real cases where tenants have taken the latest government edicts as an opportunity to pay nothing for months, years while pocketing housing benefit and spending it on anything but rent.

    To say in the most egregious cases only four weeks notice needs to be given again shows no knowledge of the process. A judgement does not mean the tenant departs, bailiffs often needed and this drags on for further months all the while the landlord is providing free accommodation often totally wrecked as of course you are giving the tenants a free pass.

    How do you justify using landlords as providers of free accommodation with no hope of regaining their property, also damage by said tenants for whom the government has weighted everything in their favour.

    You would do better to stop pandering to a shouty minority group of Guardianista free loaders and start applying some fairness to the rented sector otherwise you will find the sector has shrunk exponentially and you, the government, will in the end be left with the resultant disaster.

  3. Govt doesn’t care.
    It wants small LL gone.
    Covid19 is nanna from heaven fir the dopey Tories.

    It makes LL survival unlikely which is just what Govt wants.

    S24 which is the main method by which Govt hopes to eradicate LL isn’t working that well with mass rent defaulting.

    Govt hopes that the eviction ban will bankrupt many LL or force them out of business.

    Most of the 2 5 million LL only operate about 2 rental properties

    Govt hates the little man being a LL.

    There is no way that Govt will assist English LL as has been suggested no natter how sensible the suggestion is

    LL be aware the Govt is trying to eradicate you!

  4. It’s not the people who write for The Guardian or form Tenants Unions, that the government wants to appeal to. It’s the more general “swing voter” public, who may be influenced by such media opinions. Particularly the younger generation of working / middle classes who want to buy their own homes. These people are more important in an election, than landlords.

    No politicians really care about the poorest people in this country, because their votes don’t change election results. What the politicians do care about is the perception among the slightly better off people, who may perceive the government to be either incompetent or uncaring towards such people.

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