The global pandemic has seen the cost of rent fall by -7.9% in London and – 7.7% in the South East between March and September.
Recently, you hear tales of people moving out of expensive cities like London due to the pandemic, while more people are struggling to pay their rent due to job losses.
The typical month’s rent is now £1,519 in London and £1,061 in the South East. Other areas seeing reductions include, the East of England (-3.1%) as well as Yorkshire and the Humber (2.5%).
Calum Brannan, Founder and Chief Executive of Howsy Lettings Management said: “Already, it’s become clear that landlords are paying the price of an eviction ban that has seen many go without any rental income for months on end’’.
He further stated that the reduction in rent level is a reflection of the financial hardship in England and Wales. However, expecting landlords to cushion the effect of the situation, will have dire consequences on the rental market going forward.
According to Mr. Brannan, the recent rental increase has been as result of the lack of suitable rental stock to meet overwhelming demand. Nevertheless, landlords, will have to commence eviction proceedings, which will probably yield to several months without rental income. It may therefore take some time before rent levels recover to those seen pre-lockdown.
Source: Property Wire.