Landlord rental market survey
August 25, 2020
Vesta, in partnership with PropertyTribes, surveyed 157 landlords representing over 1,300 properties to better understand the impact of the COVID-19 pandemic on UK private residential landlords and their tenants.
The results point to a robust private rented sector (PRS) underpinned by a vast majority of landlords who provided support to their tenants when a tenant requested financial concessions due to COVID-19.
The survey also highlights that confidence appears to be returning to the market; as landlords are more positive than commentators and economists when it comes to medium-term expectations for tenancy demand and house price growth.
However, rental arrears experience indicates that caution needs to be taken by the Government when considering the speed and extent to which support is withdrawn for both landlords and tenants, to ensure that the PRS continues to function for all participants.
You can find the full results of the survey by clicking here and we’d like to say a big thank you to all Vesta customers and PropertyTribes members who responded to the survey! 😊
Landlords and tenants working well together
- Landlords and tenants have largely worked well together during the pandemic to help maintain tenancies with 87% of landlords who received a request from a tenant for a rent reduction or payment holiday due to COVID-19 agreeing to a concession and almost half (45%) of landlords agreeing to concessions with all tenants who requested one.
- Extrapolating, we estimate that the total amount of financial support provided by UK landlords to their tenants is already over £722 million.*
Robust expectations for house price growth
- Nearly 2 out of 3 landlords believe that property prices will increase or stay about the same over the next 12 months.
- This is positive given the current economic climate and stands at odds with forecasts by economists from major real estate consulting firms who are predicting varying levels of house price falls.
Half of landlords are confident to invest despite the pandemic
- 50% of landlords plan to buy at least one property over the next 12 months.
- This ties with landlords’ expectations for stable to positive house price growth and strong tenancy demand. It also ties with the results from an earlier study by Vesta, which found that the UK PRS delivered a positive performance during the first half of 2020.
Vesta is the marketplace dedicated to buying & selling residential investment property. Vesta focuses on helping landlords to sell their properties with tenants in place; preserving rental income and reducing instability and disruption for tenants.
PropertyTribes is the #1 property forum for private landlords in the UK.
* Based on 2.66 million landlords in the UK (Source: Hamptons International, February 2020), an average monthly rent of £888 (Source: Zoopla, UK Rental Market Report, June 2020) and assumes that each landlord who provided financial support did so for just one tenant for the equivalent of one month’s rent during this four-month period (i.e. 25%).
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