The survey shows that 7% of private renters are in arrears due to the pandemic and younger people and the self-employed are the worst affected. One in five renters in arrears owe more than £1,000 to their landlord and the average arrears were between £251 and £500.
The self-employed who rent were most likely to be in arrears, with 17% saying they had developed rental debts since March. In terms of age groups, the survey found that younger people were most likely to have been affected, with 14% of renters aged 18 to 24 having built arrears since March.
The West Midlands had the largest proportion of rental arrears across England and Wales with 11% of tenants having built rental deficits since March 2020. The next worst-hit area was London, where 9% of renters reported accruing arrears.
Mish Liyanage, Managing Director of The Mistoria Group comments: “Landlords are facing unprecedented times and its very worrying that rent arrears are so high across the UK. Landlords face lengthy and expensive court proceedings once the eviction ban is lifted at the end of March.
“Established landlords that have a strong and stable portfolio have been able to absorb of the rent arrears, but it’s been much tougher for smaller landlords as for majority the rental income for is the sole source of income.”
The Mistoria Group have highlighted their top tips for landlords to help survive the pandemic:
1: Dealing with tenants in line with Coronavirus act 2020 – All viewers should be wearing a mask and gloves and limit the numbers to a maximum of two people at the same time in the property. Anyone viewing a property should wear full personal protective equipment (PPE) and sanitise their hands. Also ensure all properties are sterilised, ready for new tenants.
2: Section 8 & 21 notice periods – These have been extended up to 6 months. This applies notices on both mandatory and concessionary grounds. There are exceptions for serious offences.
3: Rent arrears - Offer payment plans and try to work with tenants.
4: Viewings and voids – Ensure voids are minimised.
5: Mortgage payment holidays – Only take if you have financial difficulties.
6: Bounce back loans – Again take only if needed as some lenders see it as negative
