This is a concerning time for landlords, and it is crucial letting industry professionals face up to fresh challenges. At Just Lets, we are here to ensure all Peterborough landlords receive support and guidance if they require it.
A recent study carried out by Flatfair and Rown Estate Management looks at the private rental sector, and which tenants are most likely to be at risk of financial hardship due to the COVID-19 pandemic.
While tenants of all ages and from all walks of life face health and economic risks, the study indicates there is a concern over younger tenants. With half of the tenants falling in the 16 to 34 age group, the rental sector is at risk, and it is imperative landlords are proactive in recognising problems and supporting tenants.
Many industries and business sectors are at risk because of COVID-19
A critical factor in why this age group is at risk is because of the employment sectors they are predominantly found in. The UK retail workforce stands at close to 3 million, and around 50% of this group are aged between 16 and 34, while 25% of this workforce is aged between 25 and 34.
Another industry which is at risk during the COVID-19 pandemic is the restaurant industry. 60% of people employed in this sector are aged between 16 and 34.
Franz Doerr is the Chief Executive and founder of Flatfair, and he said; “As more firms start to furlough staff and others cease trading due to the economic impact of the virus, swathes of young renters up and down the country will see their incomes plummet and may not be able to pay their rent. Rising rent arrears are likely to mount over the year as a consequence. This may, in turn, see many landlords struggling to meet their own obligations such as mortgage repayments.”
There has also been a separate study by the Resolution Foundation which suggests more than one-third of people aged between 18 and 24 are earning less money now than they did before the lockdown period started.
Even with lockdown restrictions loosening across the country, there are still economic concerns for employees and businesses. Some form of social distancing measures are likely to remain in place, and this means people’s jobs will continue to be at risk.
Landlords must consider what places tenants, and themselves, at risk
Therefore, some tenants will be concerned about their ability to afford rent, and this causes problems for landlords. Landlords should be proactive in dealing with these issues, and you should consider speaking with tenants to see how they are faring. Of course, landlords who rely on a company like Just Lets Peterborough can rest assured that we are working hard on your behalf.
If you are a landlord in or around Peterborough, and you need assistance in finding your ideal tenant, 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.