Landlords Voice

A huge thank you to everyone who responded to our call to action for UK Landlords to voice their concerns re the Covid-19 crisis. Choosing what to publish was really hard and after careful consideration we decided to publish the three unedited responses adjacent.

My brother and I own an industrial building in Mid Wales which is held within our SIPP and has 3 tenants, one in timber manufacturing, one in distribution of giftware and one offering training services. All 3 have closed down their operations and are in tight cashflow situations. We have offered to defer 50% of the rent pending an outcome to the current situation, one has taken our offer and paid half of the quarterly rent whilst another has made an interim payment that will cover one month’s rent (until end of April). The other had fortunately paid a quarter in advance just before the crisis hit.

My biggest concern is if these companies are unable to survive the crisis forcing their businesses go under which will mean we will have no income and I think it will be very difficult to relet the properties in a post coronavirus world. I currently rely on the rents for my retirement income and not only will I lose my income but will be liable to cover rates, insurance, maintenance, security etc. costs on the empty or partially inhabited building. I believe that sales of such buildings at a sensible value will be difficult after the crisis.

I think it is important for Landlords to do whatever they can to help their tenants survive but I am very concerned that the Government seems to be happy to allow private landlords to effectively become bankers and act as a buffer in the current situation. I think that there are a lot of pensioners that rely on their retirement income from property rental that are being very badly (and unfairly) hit by the current situation.

Regards

Mark Margetts

Hello and thank you for giving me a platform to raise my concerns.

I an worried that my small amount of money in my bank account won't be enough to cover my living costs.

I am 62yrs old and rely on rental income to pay for all my living expenses, not just the mortgages. I have a property ready to let and a tenant waiting to move in but, due to current restrictions, isn't able to. I have two other houses, one with a single mum, the other with a young family. I am worried that these tenants won't be able to continue to pay their rents if the country continues in a lock down.

Apart from getting mortgage holidays, which would be of some help, the Government isn't offering private rental landlords like myself any help.

I wrote to my MP to ask whether the Government might pay 80% of lost rental income, like they are offering to the selh employed and people on PAYE. He simply replied "no that will not happen" and suggested I apply for Universal Credit.

I most certainly wouldn't want to even think about evecting tenants who couldn't pay their rent due to Covid 19. However if my tenants are unable to pay their rent then I won't be able to cover my daily living costs, even if I did get Universal Credit.

I don't understand why the Government, and other Parties, are so pro tenants at the cost of landlords? It seems so unfair.

Many thanks for taking the time to read this email.

Best wishes

Mary Weir

I am writing in response to the "Calling all landlords - we need your thoughts" email.

I support the current lockdown measures, and I believe that they are necessary in order to save lives and prevent the NHS being overwhelmed with cases of Covid-19. At the same time I am deeply concerned about the long term economic fallout from the current lockdown and any ongoing infection control measures which will continue after the immediate crisis has passed. I fear that we may be facing a global depression such as we have not seen in our lifetime, and history shows that prolonged economic depression tends to lead to deepening global conflict and instability.

While I am naturally concerned about the short term impact of the Covid-19 crisis on my lettings business, I believe that the fundamental driver of the UK property market remains strong, namely a population which is growing faster than the supply of homes. However, a deep and prolonged economic depression will cause a reduction in personal incomes which will inevitably have a chilling effect on both the rental and resale markets, particularly in the regions away from big cities, which could last for some time.

I let all of my properties through agents with full management service. Since the lockdown measures were imposed, I have been in frequent contact with my agents and they are closely following the advice and guidance provided by the MHCLG. So far my tenants have been able to keep up their rent payments and I am continuing my BTL mortgage payments as normal. However I am ready and willing to respond to any requests for flexibility from my tenants should they need it. Prior to the Covid-19 crisis I was planning to expand my property portfolio with one or two more BTL purchases this year, but I have now put those plans on hold indefinitely.

If I could speak directly to the government I would ask them how they plan to avoid a prolonged economic depression and promote international stability in the medium to long term after the acute phase of the current crisis has passed.

I would be happy to discuss any of the above points in more detail if it would be helpful to you.

Regards

James Hall

If you'd like the chance to voice your concerns here, please email 400 words on the subject of your concerns to help@ landlordinvestmentshow.co.uk