Two in three landlords say the pandemic has had little effect on their business, according to new research from Foundation Home Loans.

The survey found 64 per cent of landlords said their buy-to-let business remained resilient, despite Covid, and portfolio size had little bearing on this outlook. 

This survey was conducted in the third quarter of this year. This figure is a 3 per cent increase on similar research conducted in Q2, suggesting confidence is rising.

In addition the proportion of landlords expecting to suffer financial hardship as a result of Covid has declined marginally, from 11 per cent to 9 per cent. However, this figure has increased slightly among landlords with 20-plus properties. 

The research found that it was the self-employed landlords – those who make their living from rental income — who are most likely to feel they have been negatively impacted by the pandemic (62 per cent), compared to landlords who are retired (39 per cent) or employed part-time (45 per cent). 

Despite this, only a tiny fraction (1 per cent) of these landlords expect to lose their business as a result of Covid-19.

On a regional basis, landlords operating in London are most likely to have experienced negative effects from Covid-19. Almost three-quarters of landlords (74 per cent) operating in central London say their lettings business has been hit by Covid-19, with 31 per cent saying this impact was significant. 

However, the figures for tenant demand in London show a significant uptick compared to the levels reported earlier on in the pandemic. A total of 53 per cent of central London landlords reported ‘weak’ tenant demand in Q2, this has now fallen to a pre-pandemic low of 16 per cent.

Landlords in Wales (43 per cent) and the North West (45 per cent) are least likely to have been negatively impacted by the Covid crisis.

Foundation Home Loans commercial director George Gee says: “It’s testament to the robust nature of the buy-to-let 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.”

He adds: “It is encouraging to see that even the landlords in London are now reporting some indicators of recovering tenant demand.”