Majority of landlords confident the pandemic won't majorly impact their business

Two in three landlords believe the pandemic will have little impact on their business, according to the latest research from Foundation Home Loans.

Of the 621 landlords who participated in the survey — conducted by BVA BDRC in September — 64% said that the pandemic won’t majorly affect their business, with little differentiation by portfolio size. 

In addition, the proportion expecting to suffer financial hardship has declined marginally to 9% from 11% reported in the previous survey conducted in Q2, but increased slightly among landlords with 20-plus properties.

Overall, only 1% of landlords expect to lose their business as a result of Covid-19, and only one in three claim that they have actually seen their lettings income reduce due to the pandemic.

According to the research, self-employed landlords are most likely to have been negatively impacted by the pandemic (62%), compared to those who are retired (39%) or employed part-time (45%).

On a regional basis, landlords operating in London are reported to be the most likely to have experienced negative effects from Covid-19 — 74% of them said their letting business has suffered due to the pandemic, with 31% claiming the impact was significant.

Meanwhile, landlords in Wales (43%) and the North West (45%) are least likely to have been negatively hit.

George Gee, commercial director at Foundation Home Loans, said: “It’s testament to the robust nature of the BTL sector — alongside the resilience, long-term planning and strength of portfolios across the UK — that such an overwhelming number of landlords have successfully navigated their way through one of the most challenging periods in recent history.”

Leave a comment