Studies show that the majority of tenants prioritise their rent payments

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A new analysis from Freddie Mac, the US Federal Home Loan Mortgage Corporation (FHLMC), using a multifamily research group’s data, examined five major resources capturing rent payment information. It concluded in a new report that overall rental payment performance has remained strong in the face of the pandemic and the economic downturn.

The Freddie Mac studies found that, on average, 93.6% of renters paid full or partial rent in May and 94.2% paid full or partial rent in June. The findings are said to closely align with the National Multifamily Housing Council (NMHC) Rental Payment Tracker, which reported 95.1% and 95.5% respectively.

Steve Guggenmos, vice president of Multifamily Research and Modeling at Freddie Mac says:

“The surveys analysed in this report provide valuable insight into the rental market during this unprecedented time and it is important to consider what each source captures and how that fits into the bigger picture… The data shows that rent payment has remained healthier than some market participants anticipated throughout the crisis because renters are prioritising making their rent payments, even in financially stressed households.”

In the US, “Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers.”

An Independent British think tank, The Resolution Foundation, on the other hand, has found that private and social renters are bearing the cost of redundancies during the coronavirus recession. It is warning that more tenants are likely to fall behind with housing costs than people with a mortgage.

Nearly one in eight (12.5%) of private renters cannot now meet their housing costs in full, according to a new report – Coping with housing costs, six months on

This Resolution Foundation report, which is based on a survey of more than 6,000 adults in the UK, argues that some urgent measures are needed to protect households as the country enters a second lock down.

Despite some improvement in the UK labour market since the spring, says the report, housing costs continue to be a serious concern for many as workers struggle to cover rent and mortgage payments.

The report says that around 8% of private renters and 7% of social renters have lost their jobs since the start of the pandemic, compared to just 3% of those paying a mortgage.

Lindsay Judge, the research director at The Resolution Foundation, has said:

“As lockdown measures continue to ramp up around the UK, high housing costs are making the ongoing economic situation even worse for many families.”

The National Residential Landlords Association reports that up to 300,000 renters are still on the chancellor’s furlough scheme, which was set to end on Saturday 31 October, but is new set to be extended. This should bring some welcome relief in the short-term.

The Resolution Foundation is calling for tenants in England to be given interest-free government loans, similar to the schemes introduced in Wales and Scotland.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Studies show that the majority of tenants prioritise their rent payments | LandlordZONE.

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New figures reveal rental market bounce back since May but will new lockdown spoil recovery?

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Rental market activity bounced back aggressively during the three months that followed the first lockdown, new analysis has revealed, and continues to do so now.

While market activity slumped by 31% during the March to May lockdown months, from the beginning of June to the end of August the number of new tenancies increased by 22% year-on-year, says deposit replacement scheme Ome.

Its analysis of market activity reveals that there were 125,932 new tenancy deposits protected with the Government authorised scheme mydeposits during June, July and August.

This compares with just 98,412 during the same period last year.

And the bounce-back continues; during September 49,146 new tenancies were taken up, the highest monthly figure so far this year.

Ome co-founder Matthew Hooker says the rental market’s quick return to normal transaction levels is down to both demand bottled up during the lockdown and many renters realising their current homes are too small.

“One of the great benefits of a strong private rented sector is the flexibility it offers to those that have reassessed their living conditions and now want something different,” says Hooker.

“The post-lockdown rebound is encouraging because it shows confidence and willingness from renters to expand their horizons and readjust to their current circumstances.

“This flexibility to adapt and overcome, rather than make do with arrangements they had made prior to the pandemic, highlights just how buoyant, resilient and adaptive the private rented sector can be.

“Ome was born out of the need for renters to have greater financial flexibility and choice.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – New figures reveal rental market bounce back since May but will new lockdown spoil recovery? | LandlordZONE.

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Holiday let, an annex and a narrowboat

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I have a cottage in south York, with the potential to create a small annex with a separate entrance.

I plan to live on my narrowboat most of the year, but with me occasionally staying in the annex

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Online Super-Show Tuesday 3rd November with over 1200 minutes of free content!

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Over 2000 landlords took part in our inaugural online show for the Midland and Manchester areas on the 8th October. Now, our attention turns to the national show on Tuesday 3rd November where we are expecting an even bigger event.

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Banks and building societies agree with regulators to extend mortgage holidays

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Banks and building societies have agreed with regulators and HM Treasury to extend the provision of mortgage payment deferrals of up to a maximum of six months in the light of the tightened Covid-19 restrictions announced by the Prime Minister this evening.

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Furlough scheme and mortgage holidays extended plus additional business grants

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Chancellor, Rishi Sunak, confirmed the Coronavirus Job Retention Scheme has been extended for a month with employees receiving 80% of their current salary for hours not worked along with further economic support announced for Lockdown part 2.

The government’s Coronavirus Job Retention Scheme also known as the Furlough scheme will remain open until December

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Top eviction experts to give advice at tomorrow’s free National Landlord Investment Show

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Evictions have become the defining topic of Covid for tens of thousands of residential landlords who have tenants in rent arrears as the government and courts have restricted the evictions process.

And three of the key experts in the field are to gather tomorrow online at the Landlord Investment Show to tackle the topic head on.

Landlords wishing to attend the seminar, which is at 9.45am tomorrow morning (Tuesday 3^rd November) and lasts for an hour can log-on for free if they register as a delegate with the show.

The three speakers are Paul Shamplina, founder of Landlord Action and Tim Frome, the company’s legal director. They will be joined by John Stewart, the Deputy Director of Policy and Research at the National Residential Landlords Association (NRLA).

This trio, who between them have a combined 60 years’ or more experience working in the private rented sector, are to discuss the latest developments in arrears, evictions and the courts.

Landlords face unprecedented challenges since the pandemic struck as the government has sought to prevent evictions, including most recently extending the notice period to six months.

Paul (left), Tim and David will discuss what options landlords with rent arrears or anti-social tenants have, and the extended time lines involved.

“Tim and I are honoured to have a slot at the Landlord Investment Show which this year is online only due to the Covid restrictions,” says Paul.

“Understanding what the government’s changes mean for landlords can be an uphill struggle, so we hope to help those attending get a better grip on the latest developments – including what the new lockdown could mean for evictions between now and Christmas.”

Sign up to watch.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Top eviction experts to give advice at tomorrow’s free National Landlord Investment Show | LandlordZONE.

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Can I get a discount for early redemption?

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I have some decent mortgages with CCL, Rosinca and others (1.5% above base rate) and have enough properties to fill my time and needs.

I now have the ability to repay all the mortgages (they have between 5 and 10 years remaining) and wonder if anyone has experience of gaining a discount in the settlement figure for early repayment as it moves the low margin deal off their books.

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LATEST: Rental market to stay open during the new lockdown

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The rental market is to remain open during the new month-long lockdown due to start on Thursday, housing secretary Robert Jenrick revealed over the weekend.

The announcement was made during a slew of social media posts by the politician including that renters will be able to move, removal firms and letting agents can continue to do their jobs and that property maintenance and repair contractors will be able to enter properties.

Also, tenants and landlords will be able to conduct home moves regardless of whether they have been agreed before or after the start of the lockdown, in effect enabling an unfettered private rental market, albeit under strict Covid health and safety rules.

The official guidance on moving home has not been changed this morning and therefore viewings of rented properties will be allowed.

Lesson learned

This suggests that the government has learned from its lessons during the first lockdown, when all house moves were halted. Ministers have since said that home moves are too important a part of the economy to be restricted.

“Mark Hayward, Chief Executive, NAEA Propertymark, says “We welcome the news that the housing market is to remain open throughout this second lockdown period, and it is essential that all agents continue to play their part in reducing the spread of the virus through following all relevant guidance.

Landlords can heave a sigh of relief for two other reasons. Both the ‘mortgage holiday’ and the furlough schemes (which was due to end today) are to be extended for the duration of the new lockdown and in the case of the mortgage holiday for new applicants, for a further six months.

“It’s worth reminding ourselves that this isn’t quite the ‘holiday’ that everyone thinks it is – it’s not a freebie, payment is deferred but still due, often to the detriment of obtaining future credit,” says Ben Beadle, Chief Executive of the NRLA (left).

Watch tomorrow’s industry webinar (December 2nd) to see what key industry leaders including Ben Beadle think of the new lockdown.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Rental market to stay open during the new lockdown | LandlordZONE.

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