Land­lords warned of £5.7bn hit amid slow rent re­cov­ery

The Daily Telegraph - Business - - Business - By Mar­i­anna Hunt

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.”

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