The economic recession caused by the pandemic will be felt in 2024

Covid-19’s pandemic recession will see UK rents drop by at least 5% through 2024, costing UK homeowners £ 5.7 billion in revenue, Proptech rental service has predicted Home Made.

London will be the worst affected region, with losses of £ 3.9bn for homeowners, with Westminster, Tower Hamlets, and Wandsworth being the worst hit.

“Landlords must prepare to receive less income.”

Asaf Navot, founder and CEO of Home Made, said: “Homeowners across the UK need to prepare for low returns.”

“In a recession, tenants on tighter budgets are less inclined to take chances and move out of the house due to lower disposable incomes and increased uncertainty in the labor market, causing rents to decrease, and are likely to the Covid-19 recession hits harder than any in living memory.”

“Landlords can protect themselves by acting quickly and securing long-term tenancies with their current tenants, or by reacting quickly to pent-up demand in the new rental market after closing.”

“Landlords may also choose to prioritize long-term income over short-term profit by offering rent reductions for longer contracts, ensuring greater financial certainty.”

“Also, consider what else can be done to make the properties more attractive to tenants in the ‘new normal.’ Highlight outdoor spaces, consider allowing pets on a property (pet owners spend around 80% longer on a rental property), and adjust space to work at home. All of this will help you stand out and let your property enter a slower market.”

“It is necessary to take alternative measures to avoid greater losses.”

Other steps homeowners can take include taking out rental insurance, a mortgage payment holiday, and pointing tenants toward financial support.

Navot added: “We have not yet seen the full extent of the recession, and it is likely to be a tenant market for the foreseeable future, but this is far from doomsday.”

The good news is that rental property is a stronger investment than others in a recession, protected from extreme spikes and dips in the sales market, as people still need to rent homes, even if they are cutting other costs like travel and leisure.”

“Tenants are still researching, and landlords who are willing to commit and prioritize longer-term income and smart cash flow management over short-term profit, while streamlining their operations to cut costs, have more likely to be successful.”

HICH LTD continues to work to offer the best property survey service, before, during, and after the pandemic; we have redoubled our efforts to maintain the quality standard that has made us a leading property survey company.

Want a Building Survey? Request it here!