You are here: Home - News -

Rents started to fall across UK pre-coronavirus – DPS

by:
  • 29/04/2020
  • 0
Rents started to fall across UK pre-coronavirus – DPS
Rents across five regions of the UK were already starting to fall before the full force of the coronavirus restrictions struck, according to the Deposit Protection Service (DPS).

 

Its latest rental tracker for the first three months of 2020 found that the East, North East, North West, Northern Ireland and Wales all saw falls in rents from the end of 2019, while London was unchanged.

The remaining six regions – the East Midlands, Scotland, South East, South West, West Midlands and Yorkshire – saw rent increases.

Northern Ireland had the biggest fall with a 4.93 per cent drop worth £27 per month, while Scotland had the biggest increase of 4.9 per cent worth £30 per month.

As a result, the average rent across the UK remained largely unchanged, up just £2 per month or 0.26 per cent to £775.

Year-on-year rents across the UK increased £18 or 2.38 per cent from £757 in the first quarter of 2019.

The trends are similar to those highlighted by Hamptons International earlier this week. It suggested there could be a fall of up to five per cent in rents during 2020 from the coronavirus.

The government introduced its full lockdown on 23 March.

 

Impact of restrictions

The DPS noted that its next set of figures were likely to be affected by the UK Government’s advice that people should not move house and other policies, such as the prevention of evictions.

DPS managing director Matt Trevett 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.”

He added that communication between parties was vital at the moment.

 

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
Mortgage holiday and product transfer not always best option – AMI

Borrowers on mortgage holidays coming to the end of their fixed term should not automatically opt for a product transfer,...

Close