UK rental guarantor service Housing Hand has shared its expectations for 2021, including the issues that the private rented sector may face this year.
It has gained insight into the difficulties faced by the private rental sector from the landlords and tenants they work with across the UK. According to Group Managing Director Jeremy Robinson, 2021 could be a bumpy year for the rental market.
Robinson comments: “The pandemic has created a number of issues, ranging from tenants becoming unable to pay their rent to would-be renters experiencing difficulties during the referencing process. The latest lockdown and its subsequent economic impact have the potential to exacerbate these problems significantly.”
Turning the focus to Brexit, Terry Mason, Group Operations Director of Housing Hand, believes the impact of changes to flows of workers and students into the UK from Europe will be increasingly felt over the course of 2021. He comments: “A large number of those who travel to the UK for work or study rent their homes privately while here. Landlords who serve that market are going to feel the impact of Brexit strongly this year.”
The ongoing effects of COVID-19 are also predicted to hit the student private rental market. Housing Hand states that if universities deliver courses virtually rather than in-person come the start of the new academic year in September, there’s likely to be a significant impact on those who usually let properties to students.
The expectations for rural areas and the Home Counties are more positive, with such locations enjoying a surge in rental demand as tenants move out of London and other major cities. Housing Hand anticipates this trend continuing in 2021.
Terry Mason comments: “Lockdown 3.0 will once again emphasise the benefits of renting larger properties with outside space. The Office for National Statistics reports that 21% of London’s households have no access to a garden, either private or shared. The lower cost of renting outside of the city means that a garden suddenly becomes much more affordable.”