Landlords feel abandoned by the UK government
- Published: Tuesday 08 December, 2020
- By: Commercial Trust
In a recent survey conducted by OnePoll, for The Mortgage Lender, it has come to light that 64% of landlords say they haven’t received any financial support due to the pandemic.
52% of the landlords believe they should receive some financial support from the government in the future.
Assistance not enough
Of those surveyed, 20% of landlords have received a bounce-back loan, 24% a payment deferral as a precaution, and 11% a payment deferral out of necessity.
44% of those who had received financial support commented that it had already impacted their ability to gain further funding; whilst 31% expect it to harm their financial position in the future.
Only 8% of the landlords felt the support they had received would have no impact on them in the future.
Lender speaks in support of landlords
Steve Griffith, Sales Director of The Mortgage Lender commented, “When the Government was putting together its package of financial assistance for homeowners and tenants, BTL landlords weren’t a consideration.
“Some have benefitted from a bounce-back loan and some have taken advantage of payment deferral on their mortgages but the additional tenant protection included in the Coronavirus Act 2020 has led to landlords feeling that they have been overlooked.
“The Government was also unequivocal that payment deferrals wouldn’t impact on an individuals’ credit file, however, a large number of those BTL landlords who have received financial support in the form of a payment deferral are reporting that it is already impacting their ability to obtain mortgage funding.”
The sentiment in the landlord community is one of a feeling of abandonment and uncertainty.
With stricter rules around eviction processes and arrears possession, some feel that the government is aiming to assist tenants in this uncertain time, at the detriment of the landlord industry.
Falling tenant numbers
Alongside the lack of support from the government, there are concerns that there may be fewer tenants requiring lettings next year.
One sector that this prediction can be seen quite plainly in is student rented accommodation.
The number of students attending university next year is predicted to fall by 14%, as some choose to defer their studies, or simply attend online, from home.
Alongside this, there are fears around fewer requirements for lets within major cities and towns, as the world embraces remote working. Some landlords fear they may lose their profitable locations.
Solutions favoured by landlords
Of the panel surveyed by OnePoll, 63% of landlords favour the reinstatement of tax relief on mortgage interest payments for a period.
Before April 2020, landlords were able to deduct their mortgage expenses from any rental income. This was replaced by a tax-credit, based on 20% of your mortgage interest payments.
52% are calling for an automatic deferral of tax bills for 12 months instead.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.