Covid-19: How resilient are residential rental markets?

There has been an exodus from cities to more rural locations, of students and young professionals returning to family homes. There is a real possibility some will choose to terminate leases on expiry and return months later, causing rental voids. Almost a third (32%) of tenancies across England and Wales are due to expire in Q2, which make them most vulnerable to Covid-19. London is more protected than other regions with just 24% set to expire. Liverpool, Sheffield, Leeds and Birmingham are among the cities most vulnerable to extended void periods with more than 35% of rentals expiring before June 2020. Landlords should be pro-active in seeking to retain tenants through this period, well in advance of lease expiries. It also raises questions about the distribution of lease expiries in rental portfolios.