Research by Shawbrooks Bank has shown that
- Since March 2020, residential landlords estimate they gave up £6.5k in rent reductions and a further £7.5K on payment holidays
- More than a third of landlords proactively offered a rent reduction or payment holiday
- On average, rent reductions lasted four months and full payment holidays lasted three months
John Eastgate, Managing Director of Property Finance at Shawbrook Bank, commented “No amount of foresight could have prepared landlords, or tenants, for the impact of the pandemic.
“During this incredibly difficult period, landlords acted pragmatically, recognising the additional strain their tenants were under. In fact, in many cases landlords were initiating the conversation around cutting rents to ease their financial burden.
“This period has clearly underlined the critically important role that the private rental sector is playing, and will continue to play, in the UK housing market. Responsible landlords have shown their reliability during a crisis, understanding the changing needs of their tenants and acting quickly.
“Solid fundamentals will underpin the market going forward, landlords and investors should look to a positive future. There is a strong argument to suggest that landlords in regional locations have never been in a better position to profit, while city centres will continue to represent good value as workers head back to the office, even if it is on a part-time basis.”