Three-quarters of landlords are helping renters with cost-of-living squeeze

Three-quarters of private sector landlords have taken steps to help renters cope with the cost-of-living squeeze.

One in four landlords have frozen the level of rent they charge, while 22% have offered renters a payment holiday, according to research by bank Shawbrook.

Meanwhile, one in five landlords have reduced their rent, and 19% have offered to include the cost of bills in rent.

In the face of soaring energy costs, 26% of landlords are also taking steps to make their properties more energy efficient, such as improving insulation, installing double glazing or putting in a new boiler.

Emma Cox, managing director of real estate at Shawbrook, said: “In order to have a fair and sustainable rental market, it’s vital that landlords are open to supporting their tenants through hard times.

“Reducing rents or offering payment holidays will help tenants during the worst of the crisis and get them back on their feet.”

The findings come as our latest rental market report found that renters were looking for smaller homes to combat the cost-of-living squeeze, with two-bedroom apartments becoming more popular than three-bedroom family homes.

It also found that average rents for new lets had increased by £115 per calendar month during the past year.

Why is this happening?

With inflation, which measures the rate at which the cost of goods and services are increasing, currently running at a 40-year high, many people are struggling to cover all of their bills.

The Shawbrook study found that 85% of people living in the private rented sector had already made lifestyle changes to cope with the higher cost of living.

Many landlords recognise the pressure high inflation is putting on renters.

At the same time, it is often cheaper for them to freeze rent or offer a payment holiday, rather than face the costs and void periods associated with finding new renters.

What should I do if I’m struggling to pay my rent?

If you are struggling to pay your rent, you should contact your landlord as soon as possible to talk to them about the problem.

The research found that 14% of landlords who had not made any changes to their rent in response to the cost-of-living squeeze, would be prepared to do so if their renters were facing financial difficulties.

You are more likely to be successful if you suggest a plan to your landlord, such as paying a reduced rent for a set period of time, before resuming full payments.

What’s the background?

The Scottish Government recently announced that rents in both the public and private sector would be frozen until March 2023 as part of a package of measures to help people cope with increases to the cost of living.

It is also introducing a moratorium on evictions, meaning landlords will not be able to force renters to leave their homes, even if they fall behind with their rent.

Campaigners are calling for a similar rent freeze and eviction ban to be introduced for renters in other parts of the UK.

Meanwhile, the UK government has launched a consultation on introducing a cap on rent increases for people living in social housing, such as council and housing association homes.

The cap would be set at 3%, 5% or 7% from 1 April 2023 to 31 March 2024.

It has also included measures to protect renters from unfair rent increases and ban no fault evictions in the Renters Reform Bill, which will be introduced during the current parliamentary session.

Key takeaways

• Three-quarters of private sector landlords have taken steps to help renters cope with the rising cost of living
• Landlords are freezing rent, offering payment holidays and some are including the cost of bills in the rent
• Landlords are also taking steps to make their properties more energy efficient, such as improving insulation, installing double glazing or putting in a new boiler