In order to keep moving forward we need to continue evaluating its effect on a range of borrowers, learn from these challenges and adjust our service, criteria and product offerings accordingly.
In terms of the impact of Covid-19 on letting businesses, it’s evident that whilst it has had a significant effect, landlord confidence is steadily rising. This trend was highlighted in the latest BVA BDRC Landlord Panel research for Q2 2021 which showed that the proportion of landlords anticipating their lettings business will be negatively impacted by the Covid-19 pandemic continues to decline, falling to 55% in Q2 ‘21 (from 81% at the start of the pandemic).
There’s been a further fall (-5% since Q1) in the proportion of landlords thinking that their lettings business will be financially disadvantaged by the pandemic. When looking at this on a regional basis, for the first time, landlords in Outer London were said to be the most likely to expect the pandemic to have a negative impact. However, landlords with property in Central London continue to have the highest proportion anticipating a ‘significant’ negative impact. Overall, landlords operating in Yorks & Humber and the North West were said to be least likely to think their lettings business will be negative impacted by the pandemic.
Landlords continue to grant most tenant requests for changes to their rental agreement during the Covid-19 pandemic. Just over 1 in 3 landlords have had a tenant request a change to their rent, most commonly a rental holiday (18%) or a reduction in rent of up to 20% (14%). However, tenant requests have been declining since the start of the pandemic, with the proportion of those making a request falling by 6%pts Y-O-Y. Landlords with 20+ properties are most likely to have received a rent change request from their tenants (63% vs. 36% on average).
With so many tenants and landlords still feeling some financial impact from Covid-19, a growing number of landlords are turning to lenders - who offer a more bespoke approach to lending, a range of solutions which offer flexibility for their capital and deposits, help to reduce upfront costs and demonstrate a real understanding of their borrowing needs.
Speak to our specialist BTL team to find out more.
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