Common reasons for pay cuts and paid leave included concerns about furloughs, redundancies, and job security.
Almost half (46%) of landlords surveyed by Shawbrook Bank have reduced their tenants’ monthly rent payments due to the pandemic.
As many as 28% of landlords are granting their tenants a full rent payment holiday, a period of up to three months in which the tenant does not have to pay rent.
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Additionally, 18% proposed a rent abatement, a period in which tenants would pay a lower level of rent pursuant to an agreement with their landlord.
Landlords who gave tenants paid leave said they lost an average of £7,500 compared to rent holidays which cost landlords £6,500.
More than 33% of landlords said they proactively offered rent reductions to tenants, and a further 45% said both parties had reached an agreement.
Common reasons for pay cuts and paid leave included concerns about furloughs, redundancies, and job security.
“No amount of foresight could have prepared landlords and tenants for the impact of the pandemic,” said John Eastgate, managing director of property finance at Shawbrook Bank. are.
“During this incredibly difficult time, landlords recognized that their tenants were under additional strain and acted pragmatically.In fact, in many cases, landlords We have started talking about reducing the rent,” Eastgate added.
“This period has clearly highlighted the vital role that the private rental sector plays, and will continue to play, in the UK housing market. We have demonstrated our commitment to understanding the changing needs of our residents and acting quickly.”
“Solid fundamentals will support the market going forward. Landlords and investors should look to a positive future. There is a strong case to be made that rural landlords are in a better position to profit than ever before. On the other hand, urban centers will remain highly valued as workers return to offices, even if only part-time.
