Landlords should get same crisis deal as self-employed

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Leading property firm says landlords have fallen between the cracks as the government has moved to protect both employed and self-employed workers.

Small private landlords should get the same 80% salary guarantee as other workers to help make up for lengthy reductions in rental income, according to a leading asset management firm.

The call follows the recent announcements that employees and the self-employed are to access a scheme that pays 80% of their income up to £2,500 a month for three months, but which misses out landlords who do not fall into either camp.

Spicerhaart
Corporate Sales believes mortgage holidays may not go far enough and is calling
on the Government to extend its salary guarantee to landlords’ rental income
following the news that all evictions will be frozen for at least three months.

“While a blanket freeze on all possessions activity will protect tenants in the short term, it’s bound to lead to an accumulation of arrears that will be all the harder to deal with once the freeze is lifted,” says Managing Director Mark Pilling.

“If there seem to be no consequences to non-payment, some struggling tenants will naturally prioritise other bills, and will be more likely to ignore attempts to communicate with them to manage the situation.

“A three-month ban on possessions activity will result in even longer spells without rental income – possibly six months or more of state-enforced void periods.”

Landlords relying on income from
only a small number of properties will find payment holidays on buy-to-let
mortgages of limited help, says Pilling, and if one or more of these isn’t generating
an income for a long time, it could cause families real financial difficulty.

He adds: “Rental income is subject to income tax – to say nothing of the Stamp Duty premium paid by buy-to-let landlords. It seems only fair that it should be subject to the same Government guarantees as other income affected by the restrictions currently in place.”

Read more about the mortgage holiday.

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Most tenants will pay their rent during crisis, govt advises

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The Ministry of Housing has published new guidance to landlords and tenants contradicting lurid claims last week by lobbying groups that ‘millions’ of tenants will struggle during the crisis.

The Ministry of Housing has played down the likelihood of tenants defaulting on their rent ‘in the millions’ within its latest advice to the private rented sector

It says that ‘in many if not most cases’ the Coronavirus crisis will not affect tenants’ ability to pay rent and that if they do get into trouble, they should reach out as soon as possible to have a conversation with their landlord.

“Landlords are not required to [stop charging tenants rent]. Most tenants will be able to pay rent as normal and should continue to do so, as they will remain liable for the rent during this period.”

The guidance also reminds tenants that rent levels agreed in their tenancy agreements remain legally due and that they should discuss with their landlord if they are in difficulty.

“Tenants should continue to pay rent and abide by all other terms of their tenancy agreement to the best of their ability,” the guidance says.

“As part of our national effort to respond to the COVID-19 outbreak it’s important that landlords offer support and understanding to tenants who may start to see their income fluctuate.”

Payment plans

The Ministry of Housing has also once again underlined its belief that landlords and tenants should discuss payment plans that offer temporary agreement for tenants to pay a lower rent or agree to pay off arrears at a later date.

It has also urged landlords not to launch eviction proceedings without a very good reason, and offered guidance on how to approach the management of properties in which tenants are self-isolating or fighting off the virus.

“If you are not able to gain access to the property due to restrictions in place to tackle COVID-19, or are not able to engage a contractor to carry out the necessary work, we recommend you document your attempts to do so and all correspondence with your tenants,” the ministry says.

We strongly advise landlords not to commence or continue eviction proceedings during this challenging time without a very good reason to do so.

Read the guidance in full.

Read the latest LandlordZONE forum thread about this subject.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Most tenants will pay their rent during crisis, govt advises | LandlordZONE.

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Full Government COVID-19 guidance for landlords and tenants published

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The Government has finally released on Saturday its full pieced together non-statutory guidance for landlords and tenants during the Coronavirus emergency. Click here for the full 21 page document from MHCLG.

The Coronavirus Act 2020 is confirmed to remain in force until 30th September.

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Shelter again with latest TV advert!

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I think the latest TV advert for Shelter is disgusting. Once again giving the impression that they provide housing and once again having a pop at landlords.

This time saying a tenant had called and said their landlord had asked them to leave the property in case they got Corona Virus.

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