Whilst Covid-19 is certainly making life tough at the moment, it appears that it’s not all doom and gloom if you’re a buy to let landlord.  

Months of economic uncertainty has meant that people are struggling to secure a residential mortgage as many lenders consider their affordability models, leading to a surge in demand for rental properties as we go into the autumn and winter period.

In fact, according to RICS’ latest UK Residential Market Survey, tenant demand has soared in recent months, with a net balance of 31 per cent of contributors to the survey saying they anticipate an increase in demand over the next two years. 

BVA BDRC’s latest Landlords Panel report shows that the scale of profitability continues to increase in line with the number of properties managed. Profitability remains the highest at the larger end of the market, with one in five landlords managing 20 or more properties earning a ‘substantial’ profit from their rental business, compared to just one in 20 of landlords with up to five properties, the report found. And landlords with 11 or more properties say they’re more likely to remortgage in order to release capital than their smaller counterparts in the coming months.  

BVA BDRC’s research has also shown that a third of landlords with 20 or more properties have seen no impact on their rental income as a result of Covid-19, with more than six in 10 landlords reporting no increase in void periods as a result of the pandemic. 

Landlords should also take encouragement from HomeLet’s monthly rental index which has found that the average rent in the UK has increased by more than 2 per cent in the last year, with 10 of 12 regions monitored showing an increase in rental values in the past 12 months. 

So what can be done to ensure landlords can continue to provide the properties that will be so vital in the coming months? 

Well, I’d like to see more support for landlords. Just as tenants are being rightly protected with increased notice periods and discretionary grants being made available to the most vulnerable residents, landlords also need support. I believe the vast majority of landlords have shown great understanding and empathy over the last few months, but it’s not fair to expect them to carry the cost indefinitely. It’s why I’d like to see a scheme to cover missed rent payments introduced in England, similar to the ones already in place in Scotland and Wales.  

Lenders can also play their part by ensuring landlords can continue to access the mortgages they need. 

Landlords need tenants just as much as tenants need landlords, and in order to maintain this healthy symbiotic relationship we need joined up thinking from all sides to ensure the market can survive these Covid-19-affected times.

Adrian Moloney is group sales director at One Savings Bank