Furloughing scheme will help agents to reschedule rent payments

The government’s Coronavirus Job Retention Scheme will be essential to keeping payments flowing through the rental sector, according to a leading PropTech expert.

Neil Cobbold, chief sales officer at automated payment service PayProp, says this initiative - under which the government will cover 80 per cent of the wages of those workers who have been ‘furloughed’ or temporarily laid off - will be essential to ensure landlords can continue to receive rent during the Coronavirus pandemic.

In response to the findings of a new Zoopla survey of the lettings market undertaken by Zoopla - suggesting a 30 per cent surge in demand by renters in the first half of April - Cobbold says it is positive to see no mass withdrawal of properties by landlords.

Zoopla’s analysis forecasts that by-year end there will have been about a quarter fewer rental moves than in the previous 12 months. 

According to Cobbold this means that "letting agencies will need to focus on helping their landlords to manage long-term lets and retain good tenants. Part of this might involve interceding to ensure continued payment whilst keeping an eye on affordability."

He adds: ”Zoopla's barometer of activity shows that there is still plenty of work for letting agencies to do while the market is effectively on hold. This includes managing rental payments and temporary changes to payment schedules as well as working with landlords to prepare for tenancy changeovers when restrictions on movement are lifted."