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TODAY'S OTHER NEWS

Landlords and tenants require a ‘solution that can provide financial support’

More money needs to be made available to support landlords and renters during the existing Covid-19 pandemic, according to Bankrate UK. 

The mortgage comparison and informational service fears that the challenges in the private rented sector are only going to increase as the pandemic continues to put a strain on the economy.

The National Residential Landlords Association (NRLA) last week wrote to the prime minister requesting that the government immediately address this current situation, especially in light of the fact that repossession cases on the grounds of rent arrears will not be treated as a priority until tenants have built over a year’s worth of rent debts. 

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Added to this is the six months’ notice that landlords now have to give. Where the case is disputed, even before the pandemic, courts were taking an average of nearly six months to deal with cases, with the backlog now likely to be longer.

Taking the English Housing Survey average weekly rent in the private sector of £200, this means a potential lost income for a landlord of up to two years amounting to £20,800.

The letter points out to Boris Johnson that the vast majority - 94% - of private landlords are individuals, renting out just one or two properties, and simply cannot afford to subsidise rents indefinitely.

The NRLA is warning that the government’s failure to provide any direct financial support for the sector during the pandemic means that many landlords will be forced to seek money claims against renters building arrears, and this would leave tenants’ credit scores in tatters. This is a view supported by Bankrate UK. 

Nisha Vaidya, mortgage expert at Bankrate UK, commented: “The challenges in the private rented sector are only going to increase as the pandemic continues to put a strain on the economy.

“As the NRLA points out, most landlords are private individuals renting out one or two properties, rather than wealthy property tycoons. By being unable to claim their rental income, these individuals are facing real financial hardship too.

“In the current situation, landlords may have to consider remortgage deals, or may even end up selling their properties altogether. Meanwhile, renters in arrears could find that their credit scores plummet, which may prevent them from ever getting on the property ladder themselves.

“We urgently need a long-term solution that can provide financial support to both landlords and renters until life returns to some sort of normality.”

Poll: Do you agree that the challenges in the private rented sector are only going to increase as the pandemic continues to put a strain on the economy?

PLACE YOUR VOTE BELOW

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    It's not so much support for landlords that is need it's support for tenants that cannot pay their rent but the payments must go direct to the landlord.

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    • 01 September 2020 08:45 AM

    Govt will never assist LL as it is still hell-bent on eradicating LL.

    It DOESN'T care if LL are bankrupted or forced to sell.

    There will be NO Govt assistance to enable tenants to pay rent.

    The Govt is ideologically disposed to see the eradication of LL.

    I know we LL think this is all so unfair and of course it is but make no mistake the Govt will not assist LL as it would directly compromise their requirements to get rid of LL.

    LL need to factor into their business models that they will receive NO Govt assistance.
    Of course technically HB is Govt assistance

     
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    • 01 September 2020 08:48 AM

    So right Andrew.
    Unacceptable that people's Government money is given to those who will often use it to line their own pockets in this, the most difficult of times.

    It MUST go direct to the rightful people.

  • luigi kippelwich

    My tenant has this month spent her (Universal Credit) rent on new furniture - she was going to leave owing a month rent - her new rental fell through, she is sitting rent free (blaming hardship on coronavirus) having squandered the rent due on tat from Amazon and so on ! The government is handing out money hand over fist to people who are used to leaving huge debts behind them that are 'forgotten' and borne by the rest of society who is ALREADY paying for them through heavy taxation. Rent should be paid direct to Landlord.

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    • 01 September 2020 14:01 PM

    Welcome to the world of Govt protected feckless tenants.

    Is it really worthwhile being an AST LL!?
    Consider other options.
    If not doable then sell.

     
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    • 01 September 2020 14:55 PM

    Open up a CCJ against her immediately

     
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