October 4, 2022

75% of landlords have stepped in to help tenants with the rising cost-of-living

Shawbrook’s newest analysis has revealed that with 85% of tenants making life-style modifications to deal with inflationary pressures, it’s clear that many landlords have been taking motion to assist.

25% have frozen rents, whereas 22% have supplied a cost vacation to those that wanted it. 22% have supplied those that are scuffling with their funds a discount in lease, and 19% have supplied lease inclusive of payments.

14% of landlords haven’t made any modifications in response to the cost-of-living disaster however say they’d be keen to take action if their tenants are having monetary difficulties sooner or later.

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36% of renters surveyed mentioned they’d think about asking for a discount in lease, and 35% would think about asking for a rental vacation.

Along with providing direct monetary help for tenants, 26% of landlords have made power effectivity upgrades, resembling insulation, double glazing or a brand new boiler, to their properties to assist with rising power payments.

Underneath new proposed rules, landlords could also be required to make modifications to their properties to enhance power effectivity by 2025 for all new tenancies. This implies bringing their property’s EPC score as much as a C or above. For current tenancies, landlords have till 2028. Nevertheless, many are already taking steps to take action. Our analysis suggests that is, largely, because of rising power prices.

Emma Cox, MD of Actual Property at Shawbrook mentioned, “With the price of dwelling disaster displaying no indicators of easing, it’s encouraging to see accountable landlords play their half in decreasing the burden their tenants are dealing with. Our analysis confirmed {that a} third of tenants are already beginning to in the reduction of on necessities like meals procuring because of rising prices.

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“In an effort to have a good and sustainable rental market, it’s important that landlords are open to supporting their tenants by exhausting occasions. Decreasing rents or providing cost holidays will assist tenants through the worst of the disaster and get them again on their toes.”

She added, “Bettering properties so as to cut back power prices not solely presents a long-term answer to rising costs but in addition permits landlords to begin to get in entrance of upcoming EPC laws.

“For landlords seeking to make enhancements to their properties, chatting with your dealer on how finest to finance any works will assist get any renovations underway shortly, while nonetheless sustaining money reserves.”