Business mortgage

Foundation: 64% of owners don’t expect the pandemic to affect business


Two in three homeowners (64%) don’t believe the pandemic will impact their business, according to research from Foundation Home Loans.

This is an increase of 3% from the 61% reported in the second quarter, with little differentiation by portfolio size.

Third quarter research undertaken by BVA BDRC also shows that despite independent owners hardest hit by the pandemic, only 1% expect to lose their business to COVID-19.

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In addition, the proportion expecting to experience financial hardship decreased slightly from 11% to 9%, but increased slightly among owners of more than 20 properties.

Only one in three owners say they have seen their rental income decline due to the pandemic.

Research has found that independent owners are the most likely to feel affected by the pandemic (62%), compared to retired (39%) or part-time (45%) owners.

On a regional basis, owners operating in London are said to be the most likely to have suffered the negative effects of COVID-19.

Almost three-quarters of owners (74%) operating in central London say their rental business has been negatively impacted by Covid-19, with 31% saying this impact was significant.

However, tenant demand figures in London show a significant increase from levels reported throughout the pandemic, with 53% of central London landlords saying tenant demand was ‘weak’ in the second quarter, it has now fallen to a pre-pandemic low of 16%.

Homeowners in Wales (43%) and the North West (45%) are the least likely to have been negatively affected.

George Gee, Business Director of Foundation Home Loans, said: “This is a testament to the robust nature of the rental sector – as well as the resilience, long-term planning and strength of portfolios across the UK – that ‘Such an overwhelming number of homeowners have made their way through one of the most difficult times in recent history.

“It is encouraging to see that even homeowners in London are now reporting some indicators of a pickup in tenant demand. “