Before COVID-19, landlords already had the deck stacked against them, but new research reports that almost two-thirds of private landlords in England and Wales have been further negatively impacted by the pandemic. And just over half of the landlords responded that they have less confidence in being able to achieve their goals over the next year than they did just three months ago.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
So what can landlords do?
Even though a significant number of landlords (35%) reported an increase in demand for rental housing in the study by the National Residential Landlords Association (NRLA), the concerns brought about by the pandemic are impacting investment decisions made by landlords.
Only 16% of landlords said they planned to purchase at least one or more properties over the next year, while just about one-third said they intend to sell one or more properties. Selling is one way to go, but there are other options.
A popular option many landlords have been turning to is holiday lets. These aren’t solely reserved for ideal getaway spots like the beach or the countryside, you can set up a holiday let anywhere there’s a need for short-term rental properties. And even though there are rules you need to abide by, you won’t have to worry about the limitations buy-to-let landlords usually have to endure.
Help to get you through
As we are all weathering the same storm, many landlords have been working with their tenants, but under the impression that the situation is only temporary. A more permanent solution needs to reached to ensure landlords have confidence in making a profit from their properties again.
Rent arrears caused by the pandemic are predicted to tally up to £437 million in England. Landlords are now looking to the government to pay off these arrears to help keep tenants in their residences.
Spain, Wales, and Scotland have hardship load schemes where the landlords are paid directly through the loan. Whatever the government does decide to do needs to be able to sustain both tenants and landlords through an indeterminate amount of time while the nation hunkers down in an effort to stop the spread of coronavirus.
How can you best manage your property portfolio?
If you have concerns about how your buy to let portfolio will be affected and need help working out the financial implications, or if you’re considering if your properties might be better used as a furnished holiday let, get in touch with Dental & Medical Financial Services today.
Need help managing your property portfolio?
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