Buy-to-Let Landlords and Tenants: The COVID-19 pandemic changed more than where people lived. It changed how landlords and tenants communicated, managed financial pressure and viewed rental property.

Research published during 2020 and 2021 showed landlords offering temporary rent reductions, payment holidays and greater flexibility. At the same time, tenants began placing more value on space, energy costs and the ability to work from home.

This article examines those changes within their original market period.

At a Glance

During the COVID-19 pandemic:

• Some landlords agreed temporary rent reductions or payment holidays.
• Portfolio landlords often supported tenants across several properties.
• Tenant demand shifted towards larger homes and additional living space.
• Landlords used quieter tenancy periods to complete refurbishments.
• Rental income resilience became a more important lending consideration.
• Communication between landlords and tenants became central to maintaining stable tenancies.

How Landlords Responded to Financial Pressure

Research reported in 2021 found that 46% of surveyed landlords had reduced rent for tenants affected by the pandemic.

Around 28% had offered a full payment holiday. A further 18% had agreed to a temporary rent reduction. Payment holidays lasted approximately three months on average, while reduced-rent arrangements continued for around four months.

These were not always tenant-led requests. More than one-third of the landlords providing support said they had offered it proactively. Other arrangements followed discussions about furlough, redundancy or reduced working hours.

The pandemic demonstrated that a tenancy is both a financial contract and a human relationship. However, flexibility still required clear records.

Advisers speaking with landlord clients needed to understand:

• whether rental payments had returned to normal;
• whether arrears remained outstanding;
• how payment changes affected annual rental income;
• whether the mortgage account had been maintained; and
• whether the property still met the lender’s rental calculation.

Our buy-to-let mortgage guide explains the wider lending considerations for landlords and property investors.

Portfolio Landlords Faced Wider Exposure

Portfolio landlords were more likely to report rental income losses than landlords owning one property.

This reflected the scale of their exposure. A temporary reduction across several tenancies could affect cash flow, mortgage payments, repairs and future purchases.

According to the research, 59% of landlords who provided rent reductions applied them to more than one property.

For advisers, this made portfolio assessment particularly important. Lenders could consider:

• the number of mortgaged properties;
• total portfolio borrowing;
• rental income across the portfolio;
• individual and combined loan-to-value ratios;
• available cash reserves; and
• the landlord’s experience and financial position.

A landlord searching for consumer mortgage advice can use the portfolio landlord mortgage adviser search provided by Connect Experts.

Tenant Priorities Changed

Lockdowns increased the amount of time people spent at home. As a result, many tenants reassessed what they needed from a rental property.

Additional bedrooms, outdoor areas and space for home working became more important. Some tenants moved away from urban centres, while others returned temporarily to family homes.

These changes did not affect every location equally. However, they encouraged landlords to look beyond headline rent and consider how well a property met changing tenant needs.

A property offering practical space could support longer tenancies. Yet purchasing decisions still required careful assessment of local demand, achievable rent, running costs and mortgage affordability.

Refurbishment Became Part of the Response

The pandemic also created longer gaps between some tenancies. This gave landlords opportunities to complete work with less disruption.

Research found that 62% of surveyed landlords had refurbished a rental property during the preceding year. Average expenditure was reported at more than £13,000, rising to around £17,000 among portfolio landlords.

Common projects included:

• repainting;
• replacing flooring;
• fitting kitchens or bathrooms;
• improving heating systems;
• replacing windows; and
• creating work or study areas.

Funding methods varied. Some landlords used savings, while others considered short-term finance or borrowing secured against another property.

The funding method mattered. Advisers needed to consider the cost, repayment period, exit plan and effect on the landlord’s wider portfolio.

Further technical information is available on our buy-to-let mortgage information page.

What Mortgage Advisers Learned from the Pandemic

COVID-19 showed that rental income should not be considered in isolation.

A landlord could have strong demand but limited reserves. Another could experience temporary arrears while holding a low overall loan-to-value ratio. Good advice, therefore, depended on understanding the complete case.

Important questions included:

• Has the tenant resumed normal payments?
• Were any arrears formally agreed?
• Does the landlord hold sufficient emergency reserves?
• Has the property’s expected rent changed?
• Will refurbishment improve rentability or only increase borrowing?
• Could the existing lender offer a suitable option?
• Does the client need specialist portfolio or limited company lending?

Connect for Intermediaries supports advisers working with mainstream and specialist landlord cases. Our network membership information explains the lender access, compliance guidance and adviser support available.

Connect Experts is the associated consumer directory. It allows landlords to search for buy-to-let mortgage advisers based on their mortgage needs and other practical preferences.

The Lasting Lesson

The pandemic placed landlords and tenants under different forms of pressure. Yet both depended on the same foundations: secure housing, sustainable payments and clear communication.

For mortgage advisers, the practical lesson was equally clear. Historical rental income alone could not explain a landlord’s position. Cash reserves, tenant stability, property suitability and portfolio exposure all became essential parts of the discussion.

The market changed because behaviour changed. Understanding that behaviour helped advisers assess not only what had happened, but what a landlord might need next.