The cost of COVID: Landlords & tenants dealing with pressure
2021 has come around, but landlords and tenants are still facing a range of complications about property because of the COVID-19 pandemic. Buy to let landlords are dealing with the continued impact from restrictions, and when you place Brexit on top of it all, there is much uncertainty around the entire process. The current processes surrounding evictions are still up in the air, with some places allowing evictions to happen during COVID-19, and others flat out refusing any evictions at this time. Either way, it’s a hard time for both landlords who are relying on rental incomes, and tenants who are losing jobs and are scared about losing the roof above their heads.
Almost half of those who are investing in rented properties are currently still optimistic about the market ahead in 2021. This is especially the case given that there are guaranteed rent specialists for landlords working, allowing landlords to have peace of mind that they will still be able to collect a rent even if their tenants have lost their jobs and cannot pay. Some of the concerns coming up in 2021 also include the worry that capital gains tax will rise along with other regulatory changes, and only 10% of the surveyed landlords out there plan to exit the buy to let sector.
Photo by The Lazy Artist Gallery from Pexels
Coronavirus has turned the world upside for tenants and landlords, and everyone thought that it would be better by now. Plenty of property investors thought that house prices would continue to grow, and they are still optimistic. This is great for those looking to sell but not so great if tenants haven’t got the means to continue to pay their rent any longer. The hope is that by the summer of 2021, there will be a light at the end of the tunnel. The market could slowly begin to return to normal, with restrictions relaxed and people happier than ever. Tenants are still in a mess, worrying that they will not make rent, but this is where the government stepped in last year to help. Those who are in difficulty with their rent can negotiate payment plans with landlords, and furlough plans have helped some.
Landlords on a larger scale who were worried about the pandemic affecting their portfolios are more concerned with how Brexit will make a difference. People will always need somewhere to live, somewhere to rent, and most landlords are freezing rental rises so that tenants will be able to continue to afford rent during the pandemic. There has – bizarrely – been rather a boom on properties given that there has been a pandemic that has seen many of us stuck indoors. In December 2020, housing transactions were 34% higher than in December 2019. Thankfully for tenants, landlords are mostly taking on a long-term approach, not selling up from under their tenants. They know that it will pass eventually, and they will be able to continue to make a rental income.
Whichever side of the fence you sit on, COVID-19 has made the property market a challenge.