Rents fall in seven out of 10 regions
Average rent levels have dropped in seven out of 10 areas of England and Wales since lockdown in March, according to Howsy.
The lettings management platform looked at the average rent paid between the start of the year and lockdown and found that on average, the cost of renting had climbed 2% in the first quarter, with all regions apart from the South West (-0.5%) recording a rise.
But the situation has changed dramatically since then.
With the UK entering lockdown on the 16th March and a ban on evicting tenants following soon after on the 26th, many landlords have seen their rental income dwindle or disappear altogether.
Since March, the average rent paid across England has declined by as much as -3.4%, while Wales has seen a smaller decline (-0.9%).
London has been one of the worst-hit regions, with the average rent paid plummeting by -7.9%, while the South East isn’t far behind with a reduction of -7.7%.
The East of England (-3.1%) and Yorkshire and the Humber (-2.5%) have also seen some of the most notable reductions.
The North West (1.3%) and North East (1%) have seen an increase in rents paid while the East Midlands (0.1%) has remained flat, however, all three have seen a notable drop in the rate of growth when compared to the first half of the year.
Founder and CEO of Howsy, Calum Brannan, 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.
“To see such a considerable reduction in rent levels across the board highlights the prevalence of the financial hardship many tenants are facing across England and Wales and, of course, this is no fault of their own.
“However, while the plight of the nation’s tenants is an unfortunate one, expecting landlords to shoulder this financial decline with no help has dire consequences for the rental market going forward.”