European Tenants and Landlords face tougher financial task than UK

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Tenants in Switzerland and the Netherlands face a tougher financial task than those in the UK if left unable to work as a result of the coronavirus lockdown, data collected by Hamilton Fraser’s deposit alternative scheme, Ome shows.

The data outlines that the average monthly rent of a one-bedroom apartment in Switzerland costs £1,325, which would equate to a £3,976 loss for landlords if the lockdown lasts for the predicted three months, according to Ome.

In the Netherlands, the average monthly rental cost is £1,006, equating to a £3,019 loss on a three-month basis.

Meanwhile, the average monthly rent in the UK is £744, meaning a rental shortfall of £2,232 over three months for those unable to generate an income.

Matthew Hooker co-founder, Ome, said: “It really is anyone’s guess at the moment as to how long we will be on lockdown, with many unable to make a living while we are.

“Based on the Government’s gesture of a buy-to-let mortgage holiday for UK landlords we’re looking at least three months, although based on the extent of the damage in China we could be looking at a lot longer.

“For the four and a half million tenants in the UK’s private rental sector, this could pose a real problem with the figures showing a rental shortfall of over two thousand pounds in three months alone.

“While some will receive 80% of their wage from the Government, many won’t. Thankfully, we’ve already started to see many, many landlords offering rent holidays and reductions where they themselves can afford to.

“I think we’re on the tip of a huge cultural shift and the rental market is bound to see its fair share of changes. Whether in the form of deposits, rent or other day-to-day responsibilities of tenants I believe providing flexibility to tenants is here to stay.

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Written by: Houseladder



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