In the UK, 3.5 million households — which is over one-third of UK households — are either privately or socially rented, according to Statista. This massive rental market was severely impacted by Covid-19 and lockdown.
Some 56% of UK landlords reported a loss in rental income in 2021 highlighted by NRLA data. The same number of landlords have given tenants a deferred rent or rent-free period and plan to absorb their losses with their own savings.
On top of this, tenancy fraud is on the rise with legal costs and lost revenue, NRLA says this is costing landlords an average of £30,000. Out of all the fraudulent tenants we caught over the last 3 months 33% faked landlord references. On top of that, 18% used fake identification to apply for their accommodation.
These stats paint a pretty bleak picture.
But, luckily, that’s not the full story…
Although the market has taken an upturn, Statista reports 48% of landlords are now optimistic about the UK private rental sector, and 21% feel confident about the overall UK financial market, there are still challenges to face.
We at Homeppl like to keep a positive mindset and believe even more good news will follow. Now people are returning to work they are migrating into cities again - even if it’s only going to the office a day a week!
This infographic highlights how the rental market is looking today…
To find out more read our new report on how to make your landlords happy.
*Alexander Siedes is the Chief Executive Officer and Co-Founder of Homeppl, a software company that provides advanced automated tenant referencing checks