Virus-related arrears are still very low says major lettings chain
A new survey of COVID-19 related rental arrears shows that fewer than five per cent of tenants are behind with their rent.
The survey was the latest conducted by Belvoir, across all four of its brands.
The five per cent figure now compares to pre-lockdown arrears of two per cent.
“We have been monitoring rent arrears across all four brands – Belvoir, Northwood, Newton Fallowell and Lovelle – during lockdown and I am very pleased to confirm that our franchisees are seeing much lower figures than anticipated. In addition, we have noted a slight decrease in arrears from the first to second month” says Belvoir chief executive Dorian Gonsalves.
“We believe there are several contributory factors to Coronavirus related rent arrears being lower than anticipated – mainly because most of Belvoir’s business is outside of the London area, and average rents across the network are around £800 a month, which is more affordable for people who are furloughed. Average London rents are between £1,500 to £1,600, and this might be more of struggle for people to pay, so Belvoir tenants are at lower risk of this financial pressure” he adds.
Belvoir offices remained operational during lockdown with teams working from home: the brands’ branches are now in the process of reopening.