While there is optimism over Coronavirus vaccines, it’s likely that Covid-19 will continue to change tenants’ traditional aspirations in 2021 says a lettings industry insurance firm.
HomeLet chief excecutive Andy Halstead says: “Whilst overarching optimism remains strong for 2021, with vaccines being rolled out for Covid-19, we can still expect a year that will be disrupted by the impact of the virus.
“With the new national lockdown and the prospect of additional restrictions to help curb the impact of the virus and new variants, we can expect the demand for certain property types and locations to grow, pushing rents up further.
“With the uncertainty in a range of job markets and employment in general, we’ve seen an exceptional demand for our products that protect rental incomes for landlords.
“Contrary to perception, the vast majority of private landlords couldn’t survive financially if their tenants failed to pay the rent, especially for an extended period. Letting agents have been key to providing landlords with access to products and services which help to mitigate the risks of rental arrears, which will remain high throughout 2021.”
HomeLet has also released its latest lettings market snapshot.
The average rent in the UK, measured just before the turn of the year, is now £979, showing a 2.7 per cent increase on December 2019.
When London is excluded, the average rent in the UK is now £838, showing an increase of 5.7 per cent on last year.
The single largest regional increase in the past 12 months has been the south west of England - up 10.0 per cent - while rents in London have continued to fall, by another 4.5 per cent on average in the past year.
In December 2020, average rental value in London (£1,576) was 86 per cent higher than the rest of the UK, excluding London (£838).