Significantly more needs to done to financially support landlords and renters during the existing Covid-19 pandemic, according to the National Residential Landlords Association (NRLA).

Confidence in the private rented sector, vital to the UK’s housing makeup, is falling at an alarming rate, as landlords grow increasingly concerned that the challenges in the industry are only going to intensify as the coronavirus crisis continues to put a strain on the economy.

New research shows that almost two thirds of landlords in England and Wales expect their rental business to be adversely affected by the coronavirus crisis.

The survey of just over 2,000 members of the NRLA found that almost half – 48% – felt they would face a ‘slightly’ negative impact to their business as a result of the pandemic and 18% said they would face a ‘significant’ negative impact.

A number of buy-to-let landlords are looking to offload property in response to heightened concerns

Many landlords are concerned about their incomes and the viability of their investments, which may explain why 30% of landlords surveyed are looking to sell at least one property over the next 12 months.

In contrast, 16% of respondents said they planned to acquire at least one property over the next year.

The potential fall in the supply of homes to let, at a time when rental demand is growing across some parts of the country, is likely to add to the widening supply-demand imbalance in the market .

With research by the NRLA showing that private landlords across England have faced rental loses of up to £437m as a result of COVID-19, the organisation is now calling on the UK government to follow the example set in Wales, as well as Scotland, and develop interest-free, government guaranteed hardship loans to help tenants pay off rent arrears built up as a result of the pandemic.

The NRLA’s survey has found that 78% of respondents supported such a scheme, subject to payments being made directly to the landlord.  

Ben Beadle, chief executive of the NRLA, commented: “Whilst the vast majority of landlords have been working constructively with their tenants where they have struggled due to the pandemic, it is not sustainable to expect them or tenants to continue having rent arrears building indefinitely. This is highlighted in the lower levels of confidence among landlords and the impact it is having on their businesses.

“Providing the financial support needed to help tenants pay off rent arrears built since lockdown started would cost the government less than the Eat Out to Help Out scheme.

“As we head into more local lockdowns, it is even more important that tenants don’t have to worry about meeting their rent bill.”