Landlords rental income and cash flow squeezed

Research by Direct Line for Business suggests landlords are feeling the pressure in the current economic climate, with 30 per cent worried about receiving payment from tenants.

Some landlords have taken drastic action, with 16 per cent changing their payment terms and nine per cent having cancelled their insurance to save money, leaving both themselves and their tenants in an even more precarious position if something were to go wrong.

The research also revealed that 22 per cent of landlords are losing sleep over their cash flow. However the biggest cause of insomnia amongst landlords was fear of the state of the housing market.

Kate Syred, Head of Direct Line for Business said: "The Government's recent recommendation to protect tenants in the event of their rental home being repossessed is a step in the right direction. However with high numbers of landlords cancelling insurance policies to save money, if something were to go wrong, tenants may still find themselves without a roof over their heads."

The research also highlighted landlords' worries about the general effects of the current economic downturn on their business' (29 per cent), and fears of future ‘rising interest rates' (29 per cent).