The government has been warned that it must be careful not to cause a knock-on effect by helping tenants without considering the implications on smaller landlords.
Dave Miller, client account manager at Spicerhaart Corporate Sales, said that there was no doubt that help should be provided to those in rental accommodation. However, he said the government needs to keep an eye on the implications.
His comments follow Boris Johnson’s announcement that renters would be safe from eviction for three months as the coronavirus crisis continues to ravage the economy.
He said: “Clearly, if support is being offered to homeowners, there needs to be some help for people living in rented accommodation. Indeed, they will often be in greater need of financial assistance.
“There needs to be careful thought, however, as to where this leaves private landlords.
“Smaller-scale landlords often depend on the income from one or two rental properties. Even if lenders extend existing forbearance measures to buy-to-let mortgages, a total ban on evictions – even for a short period – could result in an extended period without receiving rental income.
“This could blow a huge hole in the finances of many private-sector landlords.”