Landlords are heavily exposed to the risk of rent arrears as half of tenants are aged 16 to 34 and therefore more likely to work in vulnerable jobs within the gig economy or retail sector, according to new analysis by Flatfair and Rowan Asset Management.

Nearly one in two of the over 2.8m retail workers in the UK are aged between 16 to 34, with one in four aged 25 to 34. 

Restaurant workers are even more likely to be young, with six in ten of those working in the food and beverage sector aged between 16 to 34.

More than one in three 18 to 24 year-olds are now earning less than they were before the outbreak, research by the Resolution Foundation recently found. 

Meanwhile, two million renters told Shelter that losing their job will leave them unable to pay rent. 

The housing charity also found 1.7m renters in England expect to lose their job in the next three months.

Flatfair founder Franz Doerr says: “As more firms start to furlough staff and others cease trading due to the economic impact of the virus, swathes of young renters up and down the country will see their incomes plummet and may not be able to pay their rent. 

“Rent arrears are likely to mount over the year as a consequence.

“This may, in turn, see many landlords struggling to meet their own obligations such as mortgage repayments.”

Rowan Asset Management chief investment analyst George Jackman says: “It is clear that there is going to be a sharp, short-term impact on many young people’s income due to the economic distress caused by the virus. 

“But the more worrying aspect of this whole crisis is how this young cohort of workers will be able to find stable employment over the long-term, with sectors like retail looking set to change fundamentally. 

“It’s really hard to see retail being able to employ 2.8m again any time soon, and right now there are no emerging industries in this country that will be able to step in and fill this gap.”