Three quarters of residential landlords have taken steps to support tenants during the current cost-of-living crisis, according to new research from the Shawbrook bank.
Some 1,000 landlords and 1,000 private tenants were questioned in the survey.
While 85 per cent of tenants have made lifestyle changes to cope with inflationary pressures, landlords are helping too.
The bank says a quarter have frozen rents, while 22 per cent have offered a payment holiday to those who needed it. More than a fifth have offered those who are struggling with their finances a reduction in rent, and 19 per cent have offered rent inclusive of bills.
One-in-seven 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 of renters surveyed said they would consider asking for a reduction in rent, and a similar number would consider asking for a rental holiday.
In addition to offering direct financial support for tenants, more than a quarter 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. Our research suggests this is, in large part, due to rising energy costs.
Emma Cox, managing director of real estate at Shawbrook, says: “With the cost of living crisis showing no signs of easing, it’s encouraging to see responsible landlords play their part in reducing the burden their tenants are facing. Our research showed that a third of tenants are already starting to cut back on essentials like food shopping due to rising costs.
“In order to have a fair and sustainable rental market, it’s vital that landlords are open to supporting their tenants through hard times. Reducing rents or offering payment holidays will help tenants during the worst of the crisis and get them back on their feet.
“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.
“For landlords looking to make improvements to their properties, speaking to your broker on how best to finance any works will help get any renovations underway quickly, whilst still maintaining cash reserves.”
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I lowered an existing commercial lease by 25% when the pandemic started
Really I deserve an OBE or at least a knighthood
I didn't collect any rent from a commercial tenant in the first lock down, so I'm ahead of you in that que George.
Lord Townshend of Norfolk?
Robert, there already is a Lord Townshend in Norfolk, he might object to another one
Andrew
OK. How about being called Prince Andrew then?........On second thoughts, better stick with plain Andrew in case of any mix up!
If I don't increase rents, I will be subsidising my tenants and losing what little profit there is in BTL these days.
George, l helped out this nice polish lady who was moving home, and wanted a short term let ! Ahem ! Then the nightmare started ! The road to hell is paved with good intentions.
Ever member of my Golf Club's Landlord Group have been improving the energy efficiency and EPC Grades of their rental units over the past few years. It's common sense - then our tenants have the money to pay the rent. I'm glad we started when we did; the huge increase in energy costs since the War started has been significant.
Golfing landlords, I can just imagine !
I have a 3-bed rental, built in 1959 and it's not Listed. It was an EPC Grade E and my tenant was complaining of high energy bills last winter.
1. I got my domestic EPC assessor to prepare a draft 'as is' EPC and a draft 'predicted' EPC for the house based on the refurb I was planning to do.
2. My handyman installed 100mm of loft insulation between the joists and then an extra 200mm layer of loft insulation at right angles across the joists. This is current Building Regs standard for a new house. Loft insulation is £24 for a big roll at B&Q
3. I had a Google Nest thermostat/timer installed. I ordered this direct from Google and a professional installer fitted it within the price.
4. My plumber installed TRVs on all the rads and showed the tenant how to use them.
5. My electrician fitted a 'kill switch' by the front door wired into the lighting circuits of the Distribution Board. As the tenant leaves the house one push of the button turns off all the lights in the house. Very simple and effective.
6. My handyman changed all non-LED lamps over to Philip LED lamps
7.I had already got my handyman to install solid insulation board between the joists on the ground floor prior to some recarpeting that I did a few years ago.
8. Pioneer Insulation fitted external wall insulation around the walls. This was a big investment but the house now looks brand new and it's a unit that I'm holding long-term.
9. I couldn't justify the expense of new windows so I bought 'poor man's' secondary glazing from a small British company called WindowSkin. I used their product before to cover a large sash window in the winter in a draughty office that I use to rent. It's a custom cut piece of totally clear Perspex that clips on the inside of the window frame in winter to cut out 100% of window draughts. Stores under a bed in the summer.
10. Whilst we were at it my handyman installed a Nuaire DriMaster Heat Positive Input Ventilation (PIV) unit up in the ventilated loft with a outlet in the 1st floor landing ceiling. The tenant was moaning about condensation and being unable to dry clothes/towels. This simple fit-and-forget unit has totally solved these problems.
11. My EPC assessor came back after I had completed these works and gave the house an EPC Grade B by one point (score 81)). This certificate stays on the national database for the next 10-years.
My mortgage broker expects to be able to get a better rate for me now that I have a 10-year valid EPC Grade B when I have to refinance next year.
The above project took me about 10 x phone-calls and 2 x site visits to sort out. It really wasn't that onerous and I was surprised how straightforward it was after I’d done the initial research
I'm now close to finishing a similar package of works on my own family home – this will raise it from an EPC Grade E to a Grade C and will start to really reduce my energy bills in the next few weeks..
Do you copy and paste the same thing to allow you more time to hang out at your golf club?
It was only a few days ago you last posted this one.
I've had to have a few small rent increases on the bills inclusive HMO rooms but nowhere near as much as the cost of utilities has risen and much lower than CPI.
The media keep on about the various percentage utility price increases but the simple fact is in August 2021 I was on fixed contracts for gas at less than 3p per kWh and electric at just under 13p per kWh. Those companies went bust and the contracts weren't honoured. Next month gas will be over 10p per kWh and electric 34p per kWh. That strikes me as a 240% increase for gas and 160% increase for electric.
Over the last year I have invested in various energy saving equipment to try and lower utility usage in the HMOs in order to keep rent rises as low as possible. A lot of my tenants have really engaged with the whole energy crisis and have cut usage quite impressively in some houses.
It doesn't matter what we do - energy prices have gone up SO much that everyone will be seeing enormous rises in their bills this year, even with the Govt's help. And all because of failed energy policy for the last 30 years.
Politicians have given up food & energy security in the name of globalisation & given Russia the power to inflict huge damage. on the West. They have all failed us :(
I have not upped my rent, but this cannot last forever, if the EPC C comes in….. then my tenants have more to worry about than a rent increase, a S21 will be issued and I will be getting out.
It may be fine for landlords with no mortgages, but for the rest of us, rents have to keep up or there are problems when we try to remortgage. Also we do actually need the rental income, especially if its our only source of income. It's not just spare money for most.
Martin has a great sense of humour, do forget to kill the lights in the Club House as you leave.
It’s not spare money by any means and its our money especially for private LL’s, it a bit different for Corporate Company LL’s who are allowed to claim for everything including loan interest then only pay 19% tax if any, (unlike me who pays 40/45%) because
of the way they can structure their portfolios and can keep buying if they want, individual LL cannot and was stopped dead from buying with S.24, then they say there’s a shortage of rental properties I wonder why ? S.21 to drive us out and S.24 to prevent any future purchase.
It would be good if Government & local Authorities understood something finance or economics instead of throwing money down the drain. They prefer the Tenants to buy as apposed to private LL, some Tenants don’t have to pay SD but LL’s pays double, say a house costing £500k in L’don but most likely it will be a Flat you won’t get a house for that in London, would attract £30k SD from LL, half or less from an individual there’s £15k gone, LL will need a license £1500, fee + probably £3 to 4k in Compliance work & Gov’ gets thy VAT as well. The private LL let’s the property generating taxable income which in my case is thousands of £’s tax per
property pa. When LL sells he has to pay c/gains tax. individual do not how much have the Revenue lost already from this free Service by self financed individuals to the State, (can they not recognise a golden goose).
Then I hear of encouraging LL to sell to their Tenants. The Est Agent looses the Sales commission, Gov’ looses the VAT, the Agents staff looses employment etc etc.
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