Around 46 per cent of landlords decreased their tenant’s monthly rent payments either by offering a full payment holiday or by reducing rent during the pandemic, according to Shawbrook Bank.
Over a quarter of landlords gave tenants a full rent payment holiday, with 18 per cent offering a rent reduction.
The research found that those who offered rental payment holidays, which typically lasted for three months, lost £7,500 on average. Landlords who offered partial rent reductions lost around £6,500. Rent reductions usually lasted for four months.
The bank surveyed 1,000 landlords, which included 150 portfolio landlords and 1,000 private tenants on their property portfolio and rental situation.
Portfolio landlords that own four or more properties were increasingly likely to agree a rent reduction, with 17 per cent saying they had missed out on income compared to 12 per cent of single property landlords.
Around 60 per cent of landlords said that they gave rent reductions to more than one of their properties.
Over a third of landlords surveyed said they had proactively offered it to their tenants, whilst 45 per cent said it was a mutual decision.
Reasons for giving the rent reduction or payment holiday were furlough, job security and redundancy.
Shawbrook Bank’s managing director of property finance John Eastgate said: “This period has clearly underlined the critically important role that the private rental sector is playing, and will continue to play, in the UK housing market.
“Responsible landlords have shown their reliability during a crisis, understanding the changing needs of their tenants and acting quickly.”
He added: “Solid fundamentals will underpin the market going forward, landlords and investors should look to a positive future. There is a strong argument to suggest that landlords in regional locations have never been in a better position to profit, while city centres will continue to represent good value as workers head back to the office, even if it is on a part-time basis.”