Rents stay static but will soon reflect impact of coronavirus, says The DPS
Em Morley - April 29, 2020
According to the recent Rent Index from The Deposit Protection Service (The DPS), London remains the most expensive place in the UK to rent.
Average monthly rents in London were recorded as £1,345 (representing 42% of tenants’ average wages) during Q1 2020, showing no change since Q4 2019.
Average Rent Q1 2020
Change since Q4 (£)
% Change since Q4 2019
The figures cover the period immediately before the Covid-19 pandemic began to seriously disrupt life in England and Wales, and The DPS said that the next set of figures were likely to be affected by the UK’s Government’s advice that people should not move house and other policies, such as the prevention of evictions.
Matt Trevett, Managing Director at The DPS, said: “Despite the stability of the rental market over the past 12-18 months, it is likely we will see a very different pattern in Q2 2020 owing to the impact of coronavirus on landlords, letting agents and tenants although it is difficult to predict the long-term effect this will have on the industry.
“For example, some landlords are asking for advice on how to make a claim against a deposit if a tenant leaves without giving notice or how to perform check-in and check-out reports during the lockdown.
“Whether you are a tenant with sudden financial difficulties or a landlord facing changes to your income, we encourage you to communicate with one another as often as possible during this challenging time.”
Paul Fryers, Managing Director, Zephyr Homeloans, which like The DPS forms part of the Computershare Group, said: “Under the mortgage payment holiday scheme announced by the Chancellor on 17 March, eligible buy-to-let landlords may apply to defer their loan payments if they cannot make their mortgage obligations because their tenant is unable to pay rent as a result of coronavirus, causing financial hardship.
“Ongoing communication between landlord and lender is key to understanding each other’s situations, and it is crucial that landlords, especially those with large portfolios, contact us so we can talk through the most appropriate solutions.”