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But in London, as elsewhere in the country, there are some early signs of the effect the pandemic is having on a rental market that was only expected to go up in 2020.

Among them is an increase in the number of short-term rental units, such as those rented through services such as Airbnb, being advertised for longer-term contracts, Danison said.

That could help ease some of the pressure in London’s rental market, which has been marked by a low vacancy rate (1.8 per cent in 2019) that has helped push prices up, Danison added.

Don’t expect London vacancy rates to soar, he said. But the longer the pandemic lasts, the more likely short-term rentals will be forced into the longer-term market,

“I don’t think . . . the vacancy rates are going to, all of a sudden, go from 1.8 per cent to 10 per cent,” he said.

“(But) the longer this goes on, the more those short-term rentals won’t be able to survive, and they’ll be forced to put into the long term stock. And once they are signed up for a year lease, you know, they’re locked in and now that short term rental is taken off the market.”

Danison said he expects to see the biggest drop in prices to come in the market’s luxury end, as families grapple with the fallout of the pandemic on their finances.

“You have people that have been laid off, or you have a couple, and one of them loses a job, and all of sudden they can’t afford the rent,” he said.

Other key demand indicators that affect rental markets have also started to slow down in London, said Andrew Scott, a senior analyst with the Canada Mortgage and Housing Corp. (CMHC).