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UK economy to recover slowly from COVID – budget office

Britain’s economy is unlikely to have a quick bounce back as it recovers from its coronavirus shutdown which could have wiped more than 30% off output last month, the head of the country’s budget forecasting office said on Sunday.

Robert Chote, chairman of the Office for Budget Responsibility (OBR), said April was probably the bottom of the crash as the government is now moving to gradually ease its lockdown restrictions.

“We know that the economy, probably at its worst last month, may have been a third or so smaller than it normally would have been, in terms of output of goods and services and people’s spending,” he told BBC television.

“But that should be the worst of it.”

Britain, like many other countries, has shut down much of its economy to slow the spread of COVID-19.

Last month, the OBR said Britain’s gross domestic product could plummet by 13% in 2020, its biggest collapse in more than 300 years.

Chote said a quick, V-shaped recovery included in that report was only meant to be an illustrative scenario to show the hit to the public finances.

“In practice I think you are likely not to see the economy bouncing back to where we would have expected it otherwise to be by the end of the year, on that assumption, but instead a rather slower recovery,” Chote said.

As well as the pace of the lifting of the lockdown, the speed of the recovery would depend on how cautious consumers remained and how companies adjust to changes in the economy such as more demand for online retailing and less for restaurants.

Chote said Britain would not necessarily have to return to severe public spending cuts to cope with the debt surge that will come from its response to the coronavirus crisis.

Key factors include how much permanent damage the economy suffers, the level of interest rates on public debt – which are currently rock-bottom – and how much the country wants to spend on health and other services.

“But a post financial crisis-style, extended period of austerity is not a done deal,” Chote said, adding tax increases were another option.

Prime Minister Boris Johnson has said he will not lead Britain into a new period of austerity after previous Conservative-led governments sought to fix the public finances by cutting spending in many areas of public services.

Writing by William Schomberg

Source: UK Reuters

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Coronavirus: UK economy shrinks two per cent in first quarter of 2020

The UK economy shrank by two per cent in the first three months of 2020 due to the impact of coronavirus, official GDP data showed today.

The slump showed the UK economy’s contracted at its fastest rate since the height of the financial crisis in 2008.

The lockdown, which started on 23 March, saw the UK economy shrink a record 5.8 per cent that month alone.

And April’s data is likely to be far worse for UK GDP growth. Almost all shops except supermarkets and pharmacies remain shut in the coronavirus lockdown. And millions of workers are furloughed, with chancellor Rishi Sunak extending the job retention scheme to October.

UK GDP shrank in all the economy’s key sectors over the quarter, the Office for National Statistics (ONS) data showed.

The services sector suffered a record 1.9 per cent decline, the production industry posted a 2.1 per cent slump and there was a 2.6 per cent drop in construction.

March suffers record hit to UK GDP

Those sectors suffered their biggest hits in March as the UK economy shrank a staggering 5.8 per cent. All sectors were badly hit, though services posted the worst drop, a decline of 6.2 per cent.

Jonathan Athow, deputy national statistician for economic statistics, said: “With the arrival of the pandemic nearly every aspect of the economy was hit in March, dragging growth to a record monthly fall.

“Services and construction saw record declines on the month with education, car sales and restaurants all falling substantially.

“Although very few industries saw growth, there were some that did including IT support and the manufacture of pharmaceuticals, soaps and cleaning products.

“The pandemic also hit trade globally, with UK imports and exports falling over the last couple of months, including a notable drop in imports from China.”

CBI: Government stimulus crucial to UK economy recovery

The CBI’s chief economist, Rain Newton-Smith, warned the full impact of the coronavirus lockdown is still to come.

But she pointed to government measures such as the extended job retention scheme, and loans for small businesses, as being crucial to the UK economy’s eventual recovery.

“The range of financial support for businesses and workers provided by the government has been a lifeline for many firms so far,” she added. “These schemes are critical in keeping companies afloat and they will need to adapt as the economy restarts.

“Reopening our economy will be a gradual, complex process. The Ggovernment’s new guidance has helped, giving businesses some flexibility for their individual circumstances. Ultimately, keeping health at the heart of a recovery plan will be key to sustaining an economic revival.”

BCC: UK facing coronavirus recession

The British Chambers of Commerce said the second quarter will likely see UK GDP plunge by a worse margin. A consecutive quarter of decline would signal a full-blown recession.

The BCC’s head of economics, Suren Thiru, said: “The speed and scale at which coronavirus has hit the UK economy is unprecedented. [It] means that the Q1 decline is likely to be followed by a further, more historically significant, contraction in economic activity in Q2.

“While a swift ‘V-shaped’ economic revival as restrictions are lifted may prove too optimistic, government support can play a vital role in avoiding a prolonged downturn. The extension of the furlough scheme was a crucial first step, but more needs to be done to ensure that the right support is in place to deliver a successful restart of the economy.”

UK economy enters ‘freefall’

Capital Economics’ chief UK economist, Ruth Gregory, warned March’s record fall was only the tip of the iceberg.

“March’s GDP figures showed that the UK economy was already in freefall within two weeks of the lockdown going into effect,” she said. “And with the restrictions in place until mid-May and then only lifted very slightly, April will be far worse.

“The gradual lifting of containment measures suggest that April will probably prove to be the low point. Nevertheless, we think that it will be a long time before activity returns to pre-crisis levels.”

The dour outlook for the UK economy pushed the FTSE 100 lower today.

London’s blue-chip index fell almost one per cent this morning. However, the two per cent fall in GDP was better than a forecast drop of 2.6 per cent for the UK, Avatrade analyst Naeem Aslam said.

But he warned that “the worst is still about to come”.

“The question is how the Bank of England is going to look at this economic data,” Aslam said. “And if they will continue to rule out the negative rates and if they will expand their loose monetary policy further. But currency traders are more focused on forward-looking factors such as the Prime Minister’s three-stage plan to open the economy.”

By Joe Curtis

Source: City AM

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UK economy will not be back to work until July at very earliest – Raab says

The British government said non-essential retailers would not go back to work until June at the earliest while other sectors will not go back to work until July at the earliest, Foreign Secretary Dominic Raab said on Monday.

“There’s the other changes for things like non essential retail and people going back to school, particularly primary school, which won’t start until the earliest on the first of June, subject to conditions,” Raab said.

“Starting from the 4th of July at the very earliest, those other sectors where they are inherently more difficult because people are mixing together and it’s difficult to maintain the social distancing, we wouldn’t be able to say … that we would start them at least until the 4th of July.”

Reporting by Guy Faulconbridge and Kate Holton

Source: UK Reuters

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Equity release activity soared before the lockdown

There was £1.06bn of equity release activity in Q1 before lockdown took effect, data from the Equity Release Council shows.

This represents a rise of 14% from the £936m recorded over the same period last year.

It was driven by strong consumer confidence in early 2020 after the general election.

David Burrowes, chairman of the Equity Release Council, said: “These figures reflect the return of consumer confidence to the broader UK economy at the start of the year, after December’s election promised to restore certainty before coronavirus took hold.

“Pent-up demand from 2019 meant homeowners continued to look to property wealth in growing numbers for later life finance in January and February, backed by strong consumer protections and increasing product flexibility.”

There were 11,079 plans agreed in Q1, the largest total in the first quarter since records began in 1991.

Drawdown lifetime mortgages made up 57% of plans taken out, with lump sum mortgages accounting for 43%.

Claire Singleton, CEO of Legal & General Home Finance, said: “The current Covid-19 environment clearly presents challenges, and it’s currently too early to gauge the impact it will have on demand.

“However, we believe the fundamental drivers of growth remain, and we expect the upward trajectory to continue. Indeed, unlike many other areas of the housing market, equity release has not stalled and the industry has adapted well to the challenges of social distancing and remote working.

“However, it must be made clear that equity release is not an ‘immediate needs’ product and therefore requires careful consideration. Much has changed since the start of the year, making it even more important to pause, take advice and avoid reacting hastily to financial concerns.”

Jonathan Barrett, partnerships director at digital retirement solutions fintech, ABAKA said: “While the equity release market is now facing the challenges posed by coronavirus and the impact of lockdown, there is a clearly still pent up demand from consumers for lifetime mortgages and other later life lending products.

“Advisers and providers will all need to be ready to manage that demand from consumers when we come to the end of this crisis, but the advice gap the sector is facing could prove to be a bottleneck.”

He added: “Recent rule updates from the Equity Release Council which now allow for remote advice mean advisers will be having to adapt more quickly to the digital world.

“Tools like AI-powered chatbots can also help support this transition by answering questions from potential customers, so that advisers can focus on supporting their clients through the equity release journey.”

BY RYAN BEMBRIDGE

Source: Property Wire

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Philip Hammond calls for UK economy to reopen

The former Chancellor Philip Hammond has called the government to ease the lockdown measures and reopen the UK economy.

Hammond told the BBC’s Radio 4’s Today programme, “The reality is that we have to start reopening the economy.

“But we have to do it living with Covid.

“We can’t wait until a vaccine is developed, produced in sufficient quantity and rolled out across the population.

“The economy won’t survive that long.”

Peel Hunt has just released the results of its COVID-19 survey of investors, corporate managers and other UK finance professions (banking/legal/accounting), revealing the City’s views on what shape the recovery will take, how investor habits and priorities will change post lockdown, and the outlook for corporates in a post-COVID market.

Source: London Loves Business

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How badly will coronavirus hit UK house prices in 2020?

UK house prices could fall by as much as 10 per cent this year due to the impact of coronavirus, experts predict.

UK house prices had started to recover from uncertainty caused by Brexit at the end of 2019.

And the so-called Boris bounce from the Tories’ election victory in December set the market up for a strong start to 2020.

But then coronavirus came along, sending the UK into lockdown – meaning buyers couldn’t visit houses, a fairly crucial step when moving house.

The dramatic economic hit has also made people more wary of making big purchases right now.

While the impact of the coronavirus outbreak on UK house prices is not yet fully understood, analysts believe they will dip in the second and third quarters of 2020.

The latest Rightmove research published this week showed the average price of property coming to market this month dipped 0.2 per cent to £311,950. By contrast, in April last year UK house prices increased 2.1 per cent.

The property platform said there is not a “functioning [housing] market” due to the coronavirus lockdown and that new sales were “almost impossible”.

Meanwhile, figures published this week by the Land Registry and the Office for National Statistics showed inflation fell back to 1.1 per cent in February after climbing to an eight-month high of 1.5 per cent in January.

What will happen to house prices in 2020?

Analyst predictions on the impact of coronavirus on UK house prices vary due to the uncertainty surrounding the lockdown exit plan and the wider economic impact.

Zoopla: Impossible to predict scale of blow

“History tells us that house prices tend to fall when the economy shrinks as a result of falling output,” says Richard Donnell, research director at property platform Zoopla.

“[This] has a knock on impact for unemployment or higher borrowing costs – all things that can result in more ‘forced sellers’.”

“Thus the scale of the impact on house prices depends upon the scale of the economic impact from Covid-19.”

Savills: House price fall of up to 10 per cent

Estate agent Savills estimated that average UK house prices will fall between five per cent and 10 per cent in the short-term while the low transaction market caused by the coronavirus lockdown continues.

EY: House prices could fall five per cent

Howard Archer, chief economist at EY Item Club, forecast that UK house prices could drop between three per cent to five per cent in the second and third quarters of 2020.

Knight Frank: Prices to sink three per cent

Meanwhile, Knight Frank predicted that average UK house prices will dip three per cent this year, and property values in London will fall two per cent.

Chesterton’s: House price drop of two per cent

London estate agent Chesterton’s also estimated that house prices in the capital will fall two per cent in 2020 due to coronavirus.

When will UK house prices bounce back from coronavirus?

Despite the gloomy outlook for house prices this year, most analysts believe the housing market could make a strong recovery by 2021.

CBRE said that pent up demand in the period after the coronavirus crisis is likely to cause a “spike in activity” in the housing market.

Knight Frank: London house prices to jump six per cent in 2021

Knight Frank forecast that London house prices will jump six per cent in 2021, while Chestertons said it expected to see growth of three to four per cent in central London next year.

Savills: London house prices to lead recovery

Despite forecasting a steep decline in UK house prices this year, Savills was more optimistic about the years ahead. The estate agent’s analysts say mid-term price growth will be an average of 15 per cent over the next five years, with prime central London leading the recovery.

EY: House price recovery of two per cent in 2021

However, EY Item Club’s Archer was more cautious, saying UK house prices could grow by two per cent next year.

“Given the impact on the economy from coronavirus, the likely substantial rise in unemployment and the impact on many people’s incomes, the housing market looks unlikely to return to the levels seen at the start of 2020 for some time,” he said.

By Jessica Clark

Source: City AM

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The UK housing market has shut down. But what happens after Covid-19?

Yesterday, we were talking about oil prices going negative. That’s pretty grim news for anyone producing the stuff (not so bad for consumers though).

Still, at least there’s still a market in oil. There’s one market that I know you’re all extremely interested in. But it’s impossible to get any prices for that one right now, according to one major market player.

I am, of course, talking about the wonderful UK housing market.

Will house prices crash or stagnate?
Earlier this week, online property portal Rightmove, which produces statistics on asking prices every month, said that the coronavirus lockdown has made it impossible to produce meaningful data on the subject.

And no wonder. Amid the lockdown, we’re effectively banned from selling or buying houses. So hardly any transactions are happening, and when they do, they’re likely to be atypical.

The question is: what happens after the market opens up again? I want to share some more general speculative thoughts today about what might happen next, but I’d also like to get your views, particularly if you’re actively looking to move or thinking about it. Send us an email to editor@moneyweek.com with the subject line “House prices”.

Firstly, do we get a price crash? This is one I’m having trouble with. I think house prices should be lower and that property should be cheaper. I think our economy could shed a lot of its biggest problems if the basic act of finding and keeping a decent roof over our heads didn’t consume so much of our mental and financial resources.

But that’s a tricky problem to solve, so let’s park it for a moment. What happens in the immediate aftermath when we’re allowed to go out again?

Andrew Goodwin of Oxford Economics argues in The Times that “you only get a price crash when you have a combination of high interest rates and high unemployment.”

And I have to say I agree with this point. A crash really has to be driven by forced selling. Forced selling only happens when people are unable to pay their mortgages. That in turn only happens when mortgage costs spike, people lose their jobs, or both. This is what drove the crash in the early 1990s in the UK.

However, those conditions seem unlikely to recur now. Unemployment certainly is rising and some people will definitely struggle as a result. But for the time being, forbearance is being urged and the level of help from the social security system is far higher than during past crises.

And on top of that, it seems highly unlikely that interest rates will rise to a point where existing mortgages become unaffordable for large numbers of people. Quite apart from anything else, a far higher proportion of home loans are on fixed rates now. That’s before we even consider the fact that central banks are bound to repress rates for years to come.

What is potentially more of a risk is that the market freezes over because of a lack of credit availability. As Hansen Lu of Capital Economics puts it, “when the lockdown is lifted, we think credit supply will be a key determinant of whether house prices are stagnant, or whether they collapse.”

One potential issue is that the banks are going to see bad debts increasing during this crisis, regardless of how well cushioned the economy is. Commercial property loans are going to become a problem, what with companies going bust and proving unable or unwilling to pay rents. Credit cards are likely to see default rates spike too.

That might in turn make banks reluctant or unable to be as free and easy with mortgage lending as they have been in the past. In turn, that means that even ready and willing buyers will not be able to pay as much as they once might have, which means that sellers will either have to take a hit, or stay put.

So a crash might be unlikely, but in that scenario we’d get stagnation or falling prices (this wouldn’t in itself be a bad thing, but a stagnant market in terms of transactions is more of a problem – it makes labour mobility even worse than it is just now).

Are we going to see a mass migration to neglected seaside towns?
The other factor which will be very interesting to watch (and potentially more positive) is the change to commuting patterns. I am not always convinced by the idea that coronavirus will change our society radically. However, I do think that it will accelerate the trend towards working from home (among those who can).

Covid-19 has forced everyone to adapt to working from home and lots of organisations (and managers) will have realised that it is perfectly possible to do everything they were doing before without the daily commute and without everyone being in an office under the watchful eye of their line manager.

I’m not saying that we’ll dump offices altogether (though some companies will – that’s a big overhead and companies will be looking at how to cut costs long-term once this is over). But if people can work from home even two days a week, the distance they are willing to commute will rise, while their concerns about the reliability of the line will diminish.

What does that mean? Well, for now, the “location, location, location” mantra often boils down to – “what are the schools like?” and “how far is it from the nearest city centre?” If the second question becomes less of an issue, then suddenly you open up a whole load of nice but slightly down-at-heel areas.

Here in the southeast, for example, you’ll probably get an influx into coastal towns that aren’t Brighton. Live by the sea, in a house about twice the size you could get if you were a half-hour closer to London? That’s a trade-in a lot of people will be newly keen to make if they don’t have to do a daily trek to the office.

By John Stepek

Source: Money Week

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Why UK property will endure COVID-19 better than most

The UK Government’s implementation of strict social distancing laws in a bid to contain COVID-19 have been affecting the ways that businesses are able to operate, and how consumers are able to manage their finances.

At the moment, the government is providing the financial stimulus necessary to ensure the private sector is able to overcome the initial challenges posed by COVID-19 and the associated lockdown measures.

The direct and indirect impact of COVID-19 has affected the performance of different sectors and financial markets in different ways. The world’s major indices have suffered considerable losses – recently, it was reported that The Dow Jones Industrial Average crashed by almost 32%.

Other financial assets have so far proven resilient, such as UK real estate. I explore the reasons why this has been the case and what recent statistics tell us about property’s projected performance below.

The ‘Boris bounce’

House prices are typically used as an indicator of capital growth for real estate. In 2019, the political deadlock over Brexit resulted in significant market uncertainty and modest house price growth.

Some commentators feared house prices would drop significantly as a consequence of Brexit – however unlikely such events actually were.

Boris Johnson’s victory in the 2020 General Election and his subsequent ability to pass the EU Withdrawal Bill through parliament resulted in surging investor interest in residential real estate. House Price Indexes for March 2020 provided evidence to this affect.

Both Halifax and Nationwide recorded that average residential property prices that month were 3% higher than they were the year prior.

With Brexit uncertainty forgotten, sellers were again eager to place their properties on the market. Coupled with the government’s growing excitement about ushering their new ‘housebuilding revolution’, it seemed that the UK was finally ready to confront the ongoing housing crisis and match the growing demand for housing with the adequate level of supply; generating strong increases market activity and a return of strong value returns all-round.

COVID-19 has put a pause on transactions

Lockdown measures imposed by the government in a bid to contain the COVID-19 outbreak has had a significant impact on the real estate market.

For the moment, the government is actively discouraging people from buying and selling properties, and some lenders have reacted to this news by deciding not to take on new enquiries.

However, I believe the momentum around the post-‘Boris Bounce’-market has not disappeared. In fact, in lieu of transactions being available, pent-up demand is likely to further exacerbate market activity once the pandemic is over.

Global realtor Savills, in November 2018, forecasted that the average UK property’s value would increase 15% by 2024 – assuming a majority government is elected and a Brexit deal is agreed.

Although both of these events occurred, COVID-19’s economic disruption could have been a new impetus for Savills to revise this figure. However, Savills is confident that long-term demand for UK real estate will drive prices higher, resulting in them not changing their original projection.

Short-term forecasts were revised to take into account significantly the decreased transactions levels expected for the next two months or so, but the long-term predictions for growth weren’t altered.

Ultimately, it can be said that COVID-19 has, in a sense, taken the place of Brexit uncertainty in artificially supressing market activity and, thus, property price growth.

It is also worth mentioning that COVID-19 is a public health crisis, not an economic one. This means that once the virus is contained there is no reason to suggest why the property market will not make a quick recovery.

That’s why I am confident we will see a surge in activity once lockdown measures are lifted and the virus outbreak has been effectively resolved.

By Jamie Johnson

Source: Mortgage Introducer

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House prices predicted to fall after coronavirus: everything you need to know

UK house prices are set to tumble in the coming months, following the government’s announcement of lockdown extension. With the housing market already at a nearly complete halt, with many property instructions and mortgage approvals put on hold, house prices will almost inevitably fall in the coming months. The question is: ‘by how much’?

The Centre for Economics and Business Research (CEBR) has published a new forecast of the economic shock that will follow the Covid-19 pandemic. Citing research carried out by the Cambridge-INET institute, CEBR predict a 35 per cent reduction in income for UK households, with economic activity already down 31 per cent since the beginning of the pandemic.

What do these figures mean for house prices? A 13 per cent reduction by the end of 2020, according to the Centre – far harsher than the impact of Brexit over the past four years.

If you’re planning on selling, these are stark figures. How likely is this prediction to come true? Kate Faulkner, property analyst and expert at Propertychecklists.co.uk, gives her view:

‘The effect on house prices will be determined not just by how bad things get economically, but most importantly how long it goes on for. Scenario one could be a “short, but very sharp shock” and if we get back on our feet, prices may fall slightly – more if an area is particularly badly affected.

‘Scenario two would be a longer impact with prices falling maybe 10 per cent or more due to unemployment and difficulties accessing finance.

‘Scenario three could be back to the days of the credit crunch where a recession hit hard for several years and prices fell by around 20 per cent, more in some areas.’

However, as Kate explains, the biggest factor that will determine which scenario will come to pass is going to be people’s behaviour after the lockdown rules are finally relaxed:

‘Will [people] want to stay put more, limiting properties for sale? Will they want to move more, improving stock levels? Will people feel much poorer, reducing confidence to move in the future? Until the market opens up again and we know if we are in for a short sharp shock or a longer running recession, predicting the market is going to be difficult.

‘However what we do know is, that even in a recession, people still need to move and over 50 per cent of people in England own their home outright, so can continue to buy and sell with cash. Whether you decide to move this year or not very much depends on your local market and your personal circumstances.’

The difficulty in predicting what house prices will do in the coming months is exacerbated by the scarcity of current available information. In fact, there are so few homes up for sale right now that the property portal Rightmove has been unable to produce its monthly report on property trends, for the first time in the portal’s history. There simply aren’t enough property transactions to be statistically meaningful, Rightmove said.

Some experts are predicting a significant decline in property transactions throughout 2020, potentially even late into the year. The Zoopla House Price Index estimates a whopping 60 per cent decline in the next quarter. This means that both buying and selling will slow down dramatically.

This isn’t necessarily bad news, however: because both supply and demand are going down, those who still are looking to buy won’t be scrambling for a tiny number of properties, because far fewer people will be looking. It’s true that their may be less choice, but there still will be houses available.

If you are planning on buying in 2020, take heart: once the lockdown restrictions are lifted and lenders restore the full range of mortgage offers, the climate for buyers will be very auspicious indeed, with low interest rates on mortgages and falling house prices.

BY ANNA COTTRELL

Source: Real Homes

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Only a handful of landlords applying for a payment holiday need one

Mortgages for Business says only “a handful” of landlords contacting its switchboard about mortgage repayment holidays are raising legitimate concerns about how to pay their mortgage in the face of the Covid-19 pandemic.

The commercial and residential mortgage broker acknowledged there are landlords in geniune difficulty. But said most of the landlords it has been talking to since the scheme was opened do have sufficient means to get them through a difficult period.

Steve Olejnik, managing director of Mortgages for Business, commented: “We’re having a lot of discussions with landlords around payment holiday requests. Only a handful are raising legitimate concerns about how to pay their mortgage in the face of the Covid-19 pandemic.

“Quite apart from the moral implications of abusing an emergency mortgage repayment scheme brought in at a time of national crisis, it could play out badly for the landlord.”

Landlords need to think long and hard before submitting a request for a payment holiday to their mortgage lender. They shouldn’t ask for a payment holiday unless they need it, if only because it could affect current and future applications. Lenders are reconsidering applications when a landlord has asked for a payment holiday on their existing loans.

Olejnik said: “Landlords must be aware that any requests could potentially damage any approaches to that lender. Lenders expect landlords to be able to cover void periods under normal circumstances – where a property is empty, and a landlord isn’t getting any rent – so they won’t take kindly to landlords trying to take advantage of them just to build up some cash reserves.

“One borrower with three live cases with their lender approached them for repayment holidays on another, existing loan. The lender immediately cancelled all three.

“Smart landlords, who want to capitalise on short-term house price falls and expand their portfolios when the lockdown is lifted, should think long and hard before approaching their lender.”

Additionally, Mortgages for Business points out that most buy-to-let lenders will ask landlords to prove they are in financial hardship before granting any holiday request. While a landlord’s ultimate tenant may be in distress and unable to make rental payments – to benefit from the scheme, landlords also need to unable to meet their mortgage repayments.

Olejnik added: “The message is simple. Do not approach lenders for payment holidays without first taking advice and thinking about the longer-term consequences. Don’t jump on the repayment holiday bandwagon.

“Any deferred payments will have to be made at some stage and it could create problems down the line – especially when you come to refinance or grow the portfolio.”

Landlords facing genuine financial hardship, who cannot afford to meet a mortgage repayment, should not cancel their direct debit payment to lenders, assuming a repayment holiday will be granted. Lenders will class this as a ‘missed payment’ and it will affect a landlord’s credit profile.

By Joanne Atkin

Source: Mortgage Finance Gazette