10% of tenants entered into rent payment plans during March, research reveals

Lettings platform Goodlord says its research among 124 agents and 20,000 tenancies last month reveals that the impact of the lockdown on the private rental market was limited.
As many campaigning groups predict a rent payment meltdown among struggling tenants during the Coronavirus crisis, a leading lettings firm has reported that late payments have increased by just 2% and that only 10% of tenants have entered into payment plans so far.

Proptech firm Goodlord examined 20,000 tenancies run by 124 lettings agencies across the UK last month to produce the figure, which it says shows that the vast majority of renters are so far keeping up with their rent, although the figures do not cover April.

Goodlord also say that few of the landlords registered on its platform made rental insurance claims on their policies, again suggesting that rent defaulting has yet to become a serious issue.

Since March 11th there has been a ‘modest’ increase in late payment behaviour, Goodlord says, increasing by 2% more properties than usual still owing rent after seven days, or an increase from 4% to 6%.

Among the lettings agents surveyed, 70% said that they have agreed payment plans with less than 10% of tenants so far, further indicating that the financial impact of the pandemic has yet to impact most tenants.

“Despite only being a month since lockdown began, the late payment figures for the rental industry are so far fairly steady, “ says Goodlord’s COO Tom Mundy.

“At the same time, agents and landlords are gearing up to offer more support in the months to come. “Many agents, along with their landlords, are thinking about how they can offer flexibility, support, and guidance to tenants who might start to struggle.”

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