Challenging times

WITH THE COST of living crisis showing no signs of easing, many responsible landlords are playing their part in reducing the burden their tenants are facing. Threequarters (75%) of residential landlords have taken steps to support tenants during the current cost of living crisis, according to research[1]. In order to have a fair and sustainable rental market, it’s vital that landlords are open to supporting their tenants through hard times. The report also highlights that reducing rents or offering payment holidays will help tenants during the worst of the crisis and get them back on their feet.

STRUGGLING WITH THEIR FINANCES

Further findings show that some 85% of tenants have made lifestyle changes to cope with inflationary pressures and, as a result, it’s clear that many landlords have also been taking action to help. A quarter (25%) have frozen rents, while 22% have offered a payment holiday. More than a fifth (22%) have offered those who are struggling with their finances a reduction in rent, and 19% have offered rent inclusive of bills. One in seven (14%) landlords haven’t made any changes in response to the cost of living crisis but say they would be willing to do so if their tenants are having financial difficulties in the future. More than a third (36%) of renters surveyed said they would consider asking for a reduction in rent, and 35% would consider asking for a rental holiday.

ENERGY EFFICIENCY UPGRADES

In addition to offering direct financial support for tenants, more than a quarter (26%) of landlords have made energy efficiency upgrades such as insulation, double glazing or a new boiler to their properties to help with rising energy bills. Under new proposed regulations, landlords may be required to make changes to their properties to improve the energy efficiency by 2025 for all new tenancies. This means bringing their property’s EPC rating up to a C or above. For existing tenancies, landlords have until 2028. However, many are already taking steps to do so. Making improvements to properties in order to reduce energy costs not only offers a long-term solution to rising prices, but also enables landlords to start to get in front of upcoming EPC legislation.

UNDERSTAND YOUR TENANTS

Recent developments mean that landlords and tenants are facing unprecedented changes that are evolving rapidly on a daily basis. Now more than ever, it is important to safeguard your landlord/tenant relationship, support one another and stay up to date with industry news that could impact you both. For you to be able to properly support your tenants, you need to understand their needs. Your main priority may be generating income from your property, but it is equally important to ensure that your tenants are happy and healthy. This may mean that in challenging times, you need to prioritise your tenant’s wellbeing or look for workable solutions that benefit you both.

Don’t forget, our professional, friendly advisers are on hand to support you and can help you explore all of your options.

Source data: [1] Shawbrook research – conducted with 1,000 private landlords – November 2022.