Research by Ome has revealed that with 5.2 million households currently within the private rental sector alone, without the ability to work and pay rent, the BTL sector could see a loss of £4.97bn every month, based on the average monthly rent of £955.
Nationally, this lost income is highest in England with potentially £11.6bn lost in rental income, while London is home to the biggest sum regionally (potentially £4.9bn).
Individually, landlords could also be faced with a £5,730 shortfall in rental income.
- B&C roundtable: Is the second charge bridging market growing?
- Industry reacts to further rate cut: BoE determined to 'bridge' peak phase of pandemic
- Is it 'business as usual' for the specialist finance sector?
With a ratio of 2.1 properties per landlord in Scotland, the loss is at its greatest at £6,146 over three months, with Northern Ireland also high at £6,083.
Matthew Hooker, co-founder of Ome, said: “It’s by no means the fault of the tenant if they are unable to pay, but there is a very real chance that landlords will turn to the rental deposits at the end of a tenancy in order to recoup this lost rent.
“The silver lining at least is that, hopefully, not all tenants will be unable to pay their rent and so this sum of lost rental income should reduce, but whichever way you look at it, the UK rental sector is in for a tough few months.”