1.2 million people relying on overdrafts to fund rent or mortgage payments

We now live in an age of living the life style on credit, the '' flash with no cash '' all show and nothing to back it up with, will it all end in tears? of course it will, mugs, but not my problem.

Ultimately it is the taxpayer that funds feckless borrowers.
Banks don't have a S24.
This means that banks are allowed to offset their losses like bad debts against their income so reducing their tax every year because they haven't earned the income.
Not many people realise this.
If banks weren't allowed to offset their finance costs against income they would have to severely reduce the credit they make available.
Strange that Govt believes that only mortgaged sole trader LL shouldn't have the GAAP applied to them!!

The "How to Rent" seems to have escaped most LL notice, it has now grown once again now to 15 pages, every few months it grows by the anti-LL establishment. Just how many changes do they want can they not know what they want in the first place, instead of adding on as they dream up.
Housing Secretary, Jenrick forcing LL's to have Pets now this comes along making LL's responsible for Pests & vermin which in the main is caused by Pets its all rubbish.
Page 12 Over Crowding again one sided only making the LL responsible for over Crowding when we all know its the Tenants that do the over crowding but by excluded by How to Rent.

sadly because of the latest virus, btl landlords are going to be suffering due to :- The government have only said that a three month mortgage holiday will be imposed that is if all of your tenants are not paying their rentals. because most btl landlords daisy chained their mortagages then if only one in 4 tenants pay their rent then no mortgage holiday will be granted. so therefore the banks will look to repossess. that is what i have been told, it appears that the banks will be looking to be propert wealthy.

for the landlords who own outright their properties then when your tenants request a three month holiday then they will have to repay the shortfall, at the end of the holiday period, thatis only if they can afford to pay the full months rent plus ann extra agreed amount. the courts are going to have a hay day so are the legal "solicitors" even then what court is going to knowingly set a CCJ against any one tenant who has suffered?

• Andrew townshend
• 31 March 2020 14:46 PM

The courts will have to do their job as laid down in law, no ifs and no buts, courts do not make the law they just apply it.

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Unfortunately for many LL they will be part of mass repossessions by lenders.

Lenders are simply incapable of offering forbearance on BTL mortgages.
Their attitude is that LL should have the capability to pay their mortgages irrespective of any circumstances.

Lenders will start repossessing if the deferred mortgage payment facility is not paid.

I predict many repossessions.
This may not mean Tenants being booted out as lenders will become the LL of last resort.
This has happened before in the 90's

Many LL will be bankrupted through no real fault of their own .

The BTL business model has always been extremely precarious as many LL are now finding.
Depending on tenants to pay rent is not a sustainable business model if the LL doesn't have sufficient reserves to cover long void periods.

Many LL will need to review the risks to their particular BTL business model.
I predict a massive contraction in the leveraged LL sector.
The levels of average leverage are simply unsustainable.
LL need to be at no more than 50% LTV and even then at that level with multiple properties a LL would struggle to have the reserves to cover 6 months of voids.

LL will need to gauge the level of financial resilience they need or want.

They will need to adjust their portfolios in accordance with such financial resilience.
Most LL could achieve this by selling off most of their properties leaving a few lightly geared or even unencumbered properties.
There will be another CV19 similar crisis in future years.
LL need to prepare for such circumstances

In light of the dysfunctional eviction processes LL would do well to remember that first thing tenants do when finances are negatively impacted is to stop paying the rent.

There is no sympathy for LL in these circumstances by society at large.

LL would do well to realise they are on their own.
Adjust business models accordingly!