Tag Archives: letting

Tips For Landlords Looking To Let To Tenants With Pets

At Just Lets, we stay in touch with the latest regulations and guidelines in the rental market, ensuring Peterborough landlords stay in touch. Earlier this year, the Government changed the Model Tenancy Agreement. This change made it easier to tenants to stay in rental property with pets, even though this isn’t mandatory.

If you are interested in letting to tenants with pets, or you would like more information on this subject, we can help.

A recent study suggests:

  • 18% of landlords oppose the changes
  • 24% of landlords strongly support the recent changes
  • 55% of landlords support the changes to the Model Tenancy Agreement which allow tenants to have pets by default

Hope McKendrick, a head of lettings for a leading name in the English lettings market, said: “Of course, there are considerations for landlords to make in terms of protecting their property and many options have been discussed in parliament, including higher deposits, referencing for pets and specific insurance.”

Information provided by the Pet Food Manufacturers Association, who admittedly have a biased position when it comes to his information, claim close to half of the households across the United Kingdom own pets.

Guy Gittins, a known name in the UK letting sector, said “I understand what an important part pets can play in people’s lives and that landlords are often unaware of the benefits of allowing pets in their properties, that is why our company has chosen to support Dogs Trust’s Lets with Pets scheme. We encourage our landlords to consider letting their properties to tenants with pets and support them in their decision to do so.”

Should landlords let to tenants with pets?

Some of the reasons landlords should consider letting to tenants with pets include:

  • By having a greater level of prospective tenants to cater for, landlords can minimise the likelihood of void periods
  • Tenants with pets are liable to stay for longer because they have finally found a rental property that caters to their needs
  • There is a growing demand for this style of service
  • There is nothing to suggest a tenant with a pet is less responsible than a tenant with a pet- continue to do your due diligence on potential tenants and find reasonable tenants

Tips for landlords when considering letting to tenants with pets?

Review your leasehold terms as these may impact your ability to let to tenants with pets

  • Ask for a reference for any pets
  • Ask questions about the pet
  • Commit to a personal clean of the rental property, and include some commitment from the tenant to pay for or pay part of this process
  • Review your insurance policy and make sure you are covered to let property to tenants with pets
  • Update your tenancy agreement to include pets

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Rental Arrears Fall – Good News For Landlords

At Just Lets, we know the challenges landlords face when tenants are late with rental payments. We work closely with Peterborough in an attempt to minimise this problem, both reactively and proactively.

We are pleased to see the findings of a recent study which suggests rental arrears are falling.

New study delivers landlords with cause for optimism

According to a study carried out by Paragon Bank, in the second quarter of 2021, landlords had an average of 1.3 tenants with an outstanding rental payment. This is the lowest figure since the opening quarter of 2011.

This means this is the lowest this figure has been in over ten years, and also, that quarter was when BVA BDRC (a research agency) started examining and following the metric.

There is cause for optimism for some landlords

In the opening quarter of 2021, landlords had an average of 1.6 tenants with an outstanding rental payment. If you are looking at the annual figures, there has been improvement too. In the second quarter of 2020, landlords had an average of 2.1 tenants with an outstanding rental fee. This was during the heart of the pandemic, so it is no surprise to see the figure at that time being higher.

There has also been a drop in the average amount of rent owed to landlords. The latest figure is a four-year low, which is another positive factor for landlords.

In the opening quarter of 2021, the average amount of rent owed to landlords was £2,736. In the second quarter of 2021, this dropped to £1,781; a fall of £595. The average amount of rent owned to landlords is at its lowest since the final quarter of 2017, when the amount was £1,584.

A lot of landlords were asked to lower rental fees

Some other findings from the survey which spoke to more than 750 landlords include:

• 36% of landlords received a tenant request to change their rent

• 14% of landlords received a tenant request to reduce rent by up to 20%

• 36% of landlords said they agreed to some form of rental fee change

• There has been a 7% drop in the year-on-year figures for requests to change rental agreements

Moray Hulme, Paragon Bank Director of Mortgage Sales said: “It is really encouraging to see the average number of tenants in rent arrears at the lowest point for ten years and the amount of outstanding rent at the lowest since 2017. Our latest survey has also shown us how landlords have been supporting tenants throughout the pandemic, granting requests to changes to rent in the vast majority of cases.”

Moray concluded by saying; “These requests have been falling alongside the incidences and volume of rent arrears and considering that the fewest number of people are now on furlough since the scheme launched in March 2020, it is a good indicator that the economy is bouncing back well.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

New Green Fund To Upgrade Rental Properties

We all know environmental matters are important, and they are a vital factor in the rental market. Tenants want to be as environmentally friendly as possible, as they know this can significantly reduce the cost of energy bills.

Also, landlords must consider the importance of maintaining energy standards in their rental property. If a landlord doesn’t ensure their rental property complies with expected standards, they could be fined, or they could lose the right to serve as a landlord.

Help is on the way

A new plan that aims to assist upgrading 50,000 homes with green improvements should be of benefit to landlords.

The Government is behind a £562 million funding programme that aims to transform some of the least energy efficient properties in the country.

Some of the work set to be carried out with this plan include:

  • Adding cavity wall insulation to properties which lack this feature
  • The addition of loft insulation where there is currently none or where it is insufficient
  • Heat pumps will be provided
  • Solar panels will be installed

An immediate aim of this programme is to help people save up to £450 per year on their energy bills. This aim is part of a larger scheme which wants to eradicate fuel poverty, help people manage energy bills and to reduce the level of carbon emissions from domestic properties.

Over 200 local authorities in England and Scotland are set to benefit from funding.

The £500 million Local Authority Delivery Fund, part of the Green Homes Grant, makes up most of the funding and is keen to assist households with an income of under £30,000.

Work will be carried out with local authorities to make sure the money goes to people and households who need it most. This includes people living in private rented accommodation, which means many landlords will also benefit from this work.

Referral routes will be in place

The Department for Business, Energy and Industrial Strategy says councils should be in a position to identify deserving households through various measures, including:

  • Liaising with health and charity sectors
  • Reviewing receipt of means tested benefits
  • Reviewing receipt of council tax exemptions

A spokeswoman for the Department for Business, Energy and Industrial Strategy says: “Interested landlords should contact their local authority to see if they are taking part in the Local Authority Delivery scheme.”

UK Business and Energy Secretary, Kwasi Kwarteng, said: “This is yet another important step we are taking to eliminate our contribution to climate change and build back greener from the pandemic.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Leeway For Landlords In Letting To Pets

While most landlords are keen to increase the potential number of prospective tenants for their rental property, it is also vital landlords vet tenants.

Selecting the right standard of tenant is crucial for landlords, and this is often the difference between a successful letting period, and a challenging one.

Many landlords find themselves perturbed when considering applications from tenants who wish to live with a pet.

This is an evolving situation for landlords and tenants

The Government has recently said blanket refusals are no longer permitted. However, there are genuine reasons as to why landlords don’t wish to let property to tenants with pets. There is a need for clarification on what landlords can do, and if there are grounds for refusing a tenant’s application.

A recent response from a prominent member of the Government will be welcomed by landlords who would prefer to avoid letting rental property to tenants with pets.

Housing Minister Christopher Pincher responded to a written question from MP Rachael Maskell. The question asked what constitutes a good reason for landlords to deny a tenant a pet ownership request.

The response will be welcomed by many landlords who are looking for more leeway in this challenging matter.

A new response might lead to further questions

The Housing Minister responded, saying; “A good reason for a landlord to decline a pet ownership request would be where a pet is demonstrably poorly behaved or unsuited for the premises in question, for example, a large dog in a small flat, or where other tenants have allergies to animals.”

Landlords will likely come under greater pressure

There are groups which work with tenants to persuade landlords to allow tenants to have pets in their rental property. One such group is the non-profit voluntary organisation, AdvoCATS, and their founder, Jen Berezai recently released a statement.

Jen said; “I’d been volunteering for a local rescue, and had seen first-hand the heartbreak of an owner surrendering their pet because they weren’t allowed to keep it under their rental contract. I’d had a couple of cases where I’d been able to successfully negotiate a tenant keeping/getting a pet.”

The group is calling for the Tenant Fees Act 2019 to be amended, presenting landlords with the opportunity to demand tenants hold pet damage insurance (if applicable). This will provide landlords with greater confidence that damages caused by a pet are recoverable.

However, the National Residential Landlords Association (NRLA) want landlords to retain the freedom to say to tenants with pets if they would prefer to not let to these applicants. The NRLA released a statement, saying; “There is also often more a risk of damage to a property where there is a pet. This is compounded by legislation which means they are unable to reflect the heightened risk in such situations in the deposit that is charged.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Relationship Changes Driving Tenant Moves

As a landlord, it is helpful to know the key factors that drive tenants moving home. Sometimes, there are major events or issues which cause people to leave an area. Job losses, or new jobs opening up in an area will often be the catalyst for many people moving home.

In cases like this, when people need to move quickly, and they want to get to know an area well before making a major commitment, the rental market is extremely busy.

There are many reasons for tenants to move home

However, you also have many personal reasons for people moving home, and again, this impacts the property and rental market.

Sadly, we will be dealing with the impact of the pandemic and lockdown for many years to come. Events over the past year have changed the way people work, live and socialise.

It is also fair to say that the events of the past year have likely changed many relationships, and relationship changes are a key factor in many people moving home and letting property.

Remote working and spending more free time at home has been helpful to some couples and families, but it will likely have placed other relationships under greater stress. There have also been financial concerns to worry about in the past year, and money troubles are also a common factor in relationship breakups.

Why are people moving home these days?

The rental market is still extremely busy in 2021, and Yes Homebuyers conducted a survey which outlines the reasons why people are moving home:

  • Divorce or end of a relationship cited by 23% of respondents
  • Relocating for personal reasons said by 21% of respondents
  • A desire to have more space was said by 19% of respondents
  • 11% of respondents said they were relocating for work reasons

The same Yes Homebuyers study also suggests searches for divorce guidance have increased by 25% due to COVID-19, and enquiries with divorce specialists have risen by 122%.

The housing market will remain active

Some of the other reasons for a property move include:

  • 11% of people said they were moving for financial reasons
  • 6% of respondents said they were downsizing to a more manageable property
  • 2% of people were moving after getting married

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “There are a number of key life events that cause us to move home and unfortunately, divorce is one of them. We’ve seen a number of reports around a spike in divorce proceedings and breakups due to the additional stress placed on relationships during lockdown. So it’s no surprise that it ranks as the driving factor for home moves at present with Covid causing restrictions in other areas of life such as marriage and relocating for work. For some, a breakup will mean a double whammy of leaving their partner and a home they love, but luckily the number of us forced to leave a property we would prefer to stay in remains rather low. However, it says a lot about us as a nation of bricks and mortar lovers when having to leave a home is more upsetting than leaving the person we shared it with.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Cleaning Remains Key Issue For Landlords & Tenants In 2021

While there are many reasons why a landlord and tenant might disagree, the cleanliness of the rental property is likely to be the most common factor.

Some of the leading disagreements between landlords and tenants include rental fee arrears, redecorating issues, property damage and garden or exterior matters. However, the most common form of complaint relates to the cleanliness and condition of the property.

At Just Lets Peterborough, we are aware of this, and we work hard to bring landlords and tenants together. We impress on all parties the need to work together to create a suitable outcome.

A clean rental property keeps everyone happy

While it is clear why landlords want a clean rental property, tenants should always have their deposit in mind. Keeping the rental property in great condition is a great way to enhance your chances of receiving your full deposit back at the end of the tenancy.

Information provided by The Dispute Service (TDS), taken from their Annual Review 2020, indicates cleaning is the most common reason for tenancy deposit dispute claims. Other reasons include damage to the property, cost of redecorating the property, rent arrears and gardening issues, but cleaning was the leading issue.

Cleaning resulted in the following percentages of claims against different branches of The Dispute Service:

  • 42% of claims made against TDS Insured
  • 53% of claims made against TDS Custodial
  • 45% of claims made against TDS Northern Ireland
  • 69% of claims made against SafeDesposit Scotland

Tenants are raising disputes against landlords

There has also been an increase in the proportion of disputes cited by tenants. In the 2018=19 review, this was at 67%, but in 2019-20, this had risen to 74%.

Paul Oxley, Managing Director of lettings management software company Decorus for Sage, said: “According to the TDS, many tenants claim that the cleanliness of the property at the start of the tenancy was not clear, or that the tenancy agreement did not make clear what was expected of them. So, it is vital that landlords have a proper inventory prepared and do a thorough check-in and check-out, so they have the right proof of condition at the start and end of a new tenancy agreement. When landlords take the time to spell out tenants’ responsibilities in terms of cleaning and caring for the property, tenants are more likely to conduct their tenancy in a way that is respectful to the property and this minimises any potential damage.”

Paul Oxley also said; “At the check-out stage, the tenant should be made aware of the areas requiring cleaning and the potential cost involved. It is important to remember that the tenant is only obliged to return the property in the same state of cleanliness as at the start of the tenancy, after allowing for fair wear and tear. Landlords should conduct thorough check-in and check-outs at the start and end of the tenancy, supported by a professional inventory. Clear communication on the tenant’s responsibilities when they move into the property will improve the chances of a trouble-free check-out.”

Inventories benefit landlords and tenants

There is no denying that a reliable inventory check, carried out at the start of the tenancy, benefits both the landlord and tenants. This document should act as the benchmark for what is expected in the property, which should provide comfort and support for all parties.

If you would like to learn more about the benefits of a dependable inventory check, or you want to ensure your next lets start off in the correct manner, please get in touch with Just Lets Peterborough.

Paul Oxley continues: “The common mistakes in landlord inventories are essentially lack of detail. Landlords often write just a brief shopping list and often do not have the appropriate photographs and videos, along with accompanying written descriptions to show the condition of the property and its contents.”

Paul concluded by saying; “If the landlord finds the tenant fails to agree to the deposit deductions, they need to ensure they have the evidence such as a thorough and fully detailed inventory, copies of which are given to the tenant at check-in and check-out. It is imperative that tenants sign their acceptance of the contents of the check-in within seven days of the move in, and this signed copy should be retained by either the landlord or the landlord’s agent.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Budget Measures – Impact On Landlords

While the stamp duty holiday extension is mainly focused on the housing market, it is an opportunity for landlords to expand their property portfolio at a lower cost.

The stamp duty saving applies to landlords, and even though the extra charge applies for purchasing additional property, landlords can save money. Therefore, if you are looking to increase your rental stock, you still have time to do so.

If you need any guidance or support in the housing market after the March 2021 Budget, please get in touch with Just Lets Peterborough.

Stamp duty holiday extension offers relief to many buyers

The Chancellor, Rishi Sunak, has announced an extension of the stamp duty holiday until June 30.

Following this date, the nil rate band for stamp duty will be set at £250,000 until the end of September.

On October 1st 2021, the nil rate band will return to the previous £125,000.

The additional three months of the stamp duty holiday will provide comfort for buyers and vendors whose property deal was still in the process of being completed.

Many would-be buyers were concerned at the thought of having to pay the full stamp duty to complete their move. In some cases, this would add £15,000 to the price of buying a home.

This rate applies only to home buyers in England and Northern Ireland. There are different schemes in place for property buyers in Scotland and Wales. It will be up to those nations to decide if they wish to follow suit or offer a similar scheme.

In his own words, Rishi Sunak said; “I can announce today the £500,000 nil rate band will not end on March 31, it will end on June 30. Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September – and we will only return to the usual level of £125,000 from October 1”.

Early thoughts from industry observers

Buying agent Henry Pryor said: “There will be a new cliff edge — it will just move from the end of March to the end of June. There will be a whole new load of people who will be wailing and gnashing their teeth because they could not get their deals over the line by June 30.”

Mark Peck, Director, Cheffins, an auctioneer business, said: “Whilst the extension to the stamp duty holiday will be welcomed for those with property sales already agreed, the government here is simply kicking the can down the road with chaos set to ensue once the tax break is reduced in June and tapered until September. The pressure on the property industry since the announcement of the stamp duty holiday has been immeasurable and this extension will simply continue to add to the strain already being felt by both buyers and sellers as they look to complete on sales before the end of the tax break.”

Mark concluded by saying; “Whilst the chancellor has attempted to manage this with the tapering system until September, the property industry will need to brace itself for further pandemonium throughout the summer months. Whilst the stamp duty holiday certainly allowed the property market to continue with full force throughout the coronavirus pandemic and ensure that property sales continued at a fast pace, it has created an unhealthy scenario with values increasing at unsustainable levels within a short space of time.”

There was no formal announcement of changes to Capital Gains Tax (CGT) in the Budget, although proposals are expected to follow soon.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

 

Tenant Disputes And Dealing With Them

These are tough times for everyone, and disputes are likely to occur. However, there will always be disputes between landlords and tenants.

At Just Lets, we aim to help you manage these disputes, and hopefully minimise the disruption at your rental property.

The headline figures, according to recent data provided by The Dispute Services, TDS, are as follows:

  • The private rented sector (PRS) remains larger than the social rented sector in England, while smaller in Wales.
  • The number of private rented homes has risen in England from 2.13 million in 2001 to 4.8 million in 2018 and in Wales from 90,000 to 204,000.
  • The value of tenancy deposits has increased year on year from £885,098,501 in March 2008 to a total of £4,307,902,071 in March 2020.
  • The value of the average deposit has increased from £880 in March 2010 to £1,040 [a drop from £1,108 in the previous year] in March 2020.
  • There has been an increase in protected tenancy deposits with 924,181 protected in March 2008 to 4,141,467 protected in March 2020.

Dispute numbers have risen in recent times

  • Adjudications completed by all tenancy deposit schemes has risen from 458 in 2008 to 34,993 in 2020.
  • Since 2013, the percentage of total deposits protected resulting in a dispute, across all tenancy deposit protection schemes, has remained low, ranging between 0.82% and 0.92%.
  • Currently the rate sits at 0.84%.

Reasons for disputes in England and Wales

  • Of the cases submitted to TDS Insured in 2019-20, cleaning appeared as a reason in 42% of cases, with damage arising in 41%.
  • 74% of disputes raised with TDS Insured were raised by tenants in 2019-20, with 19% raised by the agent and 7% raised by the landlord.

Reasons for tenancy deposit disputes in TDS Insured in 2019/20

  • Cleaning 42%
  • Damage 41%
  • Redecoration 39%
  • Gardening 23%
  • Rent arrears 14%

This information should be of benefit to landlords and tenants. Tenants should be looking to reclaim all or most of their deposit, so it makes sense to focus on the problems that often lead to disputes. This should see tenants cleaning the rental property on a regular basis.

There is also a lot to be said for landlords encouraging tenants to maintain clean standards in the rental property. Regular visits are a common tip, but some landlords have achieved great success by buying cleaning products for the tenant.

If you consider this as an investment, it will often pay off in less time and money wasted, making the changeover period easier.

If you have to waste time cleaning property at the end of a tenancy, this will delay you from moving a new tenant in. Void periods cost landlords money, so you should look to minimise this time, and encouraging tenants to clean throughout the tenancy can deliver fantastic results.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Stronger Demand For Rent In people Aged 35 And Older

A recent study by Paragon Bank suggests the desire from tenants to own property, which includes saving for a deposit, starts to fall from the age of 35.

The study found that for the age group of people between 25 and 34, 88% of respondents said they wished to own their property in the future. 71% of these respondents said they were saving for a deposit.

For the group aged 35 to 44, this falls to 72% of tenants saying they would like to own property in the future.

When you consider the 45 to 54 age group, just 70% of respondents say they are keen to own their property.

This is something to consider for landlords, as it will likely impact on willing tenants, and how long a tenant is happy to stay in the same rental property.

The rental market is experiencing a change in demand

Richard Rowntree, managing director of mortgages at Paragon Bank, said: “Our research shows a strong desire to buy amongst younger tenants who will typically use rented property as a starter home before stepping on the property ladder. This cohort also is more able to save for a deposit, making their aim of buying a home more attainable. As tenants reach their middle-aged years, the desire to own a home becomes less pronounced, but so does the ability to save for a property. These tenants will typically stay in the private rented sector for a longer period, maybe for the rest of their lives.”

It is not as if there has only been a shift in the rental market, the property market is also evolving. Recent studies from UK Finance suggest the average age of the first-time property buyer in 2019 was 32.

This means that there will be more tenants at both ends of the age demographic. This is something landlords should be aware of, and it might influence your next decision in the rental market.

You can target which tenant you want to let to

Some landlords are not bothered as to what type of tenant they let to, as long as the rental property is filled with a rent-paying tenant. However, not all landlords are as carefree in their approach to letting property.

If you have a preferred tenant in mind, it is possible to target this market. There is a notable difference between the needs of a tenant in their early 20s and a tenant who is in their late 50s or early 60s.

The size of rental property both these tenants groups are looking for might be the same, but the style and presentation that these groups want to see are likely to be significantly different.

If you are looking to let to a particular type of tenant, please get in touch, and we will be more than happy to help. At Just Lets, we want Peterborough landlords to feel confident about the letting process, and the tenants they have in their property.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

 

Landlords Calling For Financial Support

2020 has been a difficult year for most of us, and the letting industry has been badly affected. Some landlords have received some financial backing, but this doesn’t apply to every landlord. There is also a call for more help for landlords.

64% of landlords who respondent to the survey provided by TML, The Mortgage Lender, said they haven’t received any financial support and 52% of respondents believe they should receive financial support in the future.

Some other key findings of the study include:

  • 63% of respondents favour the reintroduction of tax relief on mortgage interest payments for a short spell of time
  • 52% of respondents have called for an automatic deferral of tax bills for 12 months
  • 20% of landlords state they have received a bounce-back loan
  • 24% have taken a payment deferral as a precautionary measure
  • 11% of respondents have taken a payment deferral out of necessity

Concerns about landlords backing in the future

From the group of landlords who have received financial assistance, 44% of them have said it has already impacted on their ability to arrange further mortgage funding. This was a concern many landlords had back in March and while it was suggested it wouldn’t be an issue, it was a worry that there was no definitive answer.

31% of the landlords who have received financial support expect it to negatively impact on them in the future.

Only 8% of landlords who have received financial backing don’t expect it to count against them in the future.

Steve Griffiths, TML sales director, said: “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.”

Steve Griffiths also said; “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. We don’t use a tick box approach to underwriting but rather look at the individual and the property portfolio as a whole to determine whether we will lend – we’re also available to talk through cases with brokers before they are submitted.”

We are here to help

At Just Lets, we know these are challenging times, and we are keen to help as many landlords in and around Peterborough as we can. If you are looking for assistance or guidance in any matter, please get in touch, and we will do our best to support you.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.