Arrears slashed during pandemic, shows major industry report

One of the industry’s leading surveys comes out next week - and a preview suggests it’s going to show increasing optimism amongst agents.

A brief preview of the Goodlord and Vouch State of the Lettings Industry report, reflects the views of 550 lettings professionals and 1,700 tenants took part. 

Their responses paint a picture of the industry following an unprecedented 12 months, as legislation, lockdowns and changing consumer behaviours kept the market in a near-constant state of flux. 

Overall, both agent and tenant optimism is high. 

Only six per cent of the 1,750 tenants surveyed say they are concerned about the pandemic affecting their ability to pay rent. And agents are also feeling bullish on tenants’ ability to keep up with payments. 

Compared to September 2020, when the last survey was conducted, the number of lettings professionals reporting an increase in arrears over the past year has halved from 64 to 32 per cent, with 14 per cent of agents reporting a decrease in arrears. 

Lack of stock, however, is a major concern for agents, with almost half of those surveyed citing that at least five per cent of their landlords have left the sector over the last 12 months. And a sizeable majority, 64 per cent, predict the landlord exodus to get worse. 

The report - out next Wednesday - will also reveal industry opinion on upcoming regulatory changes, sentiment on the impact technology is having on workforce numbers, as well as the proportion of agents who have unlocked new revenue streams. 

Tom Mundy, Goodlord chief executive, comments: “We can see … that most renters are feeling financially secure and agents aren’t encountering the escalating levels of arrears seen a year ago. This is borne out by the latest statistics from our monthly rental indices, with rents heading up and voids dropping during 2021. 

“Key challenges do remain, with lack of stock clearly a huge area of concern for most agents.”