Landlords warned of £5.7bn hit amid slow rent recovery
LANDLORDS are to suffer a £5.7bn hit from the Covid crisis as rents plunge 5pc and take four years to recover their pre-virus peak, research suggests.
The percentage fall will be as large as during the 2008 financial crisis, according to property website Home Made – but losses will be four times bigger because there are now many more private renters in the market.
Property investors are braced for a bleak winter as job support schemes come to an end and unemployment surges, leaving many thousands of tenants struggling to pay their bills.
The head of Reed, Britain’s largest recruitment firm, has predicted that up to five million people could be made redundant as a result of the crisis, sending the jobless rate soaring to higher levels than during the Eighties.
Asaf Navot from Home Made said: “Landlords across the country need to brace themselves for reduced returns.
“In a recession, renters have tighter budgets and are less inclined to take a risk and move homes due to reduced disposable income.”