“Don’t jump on the repayment holiday bandwagon”

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Mortgage broker, Mortgages for Business, are warning landlords not to spoil bank’s goodwill towards landlords in real trouble by applying for a payment holiday if you don’t need one. They report most landlords enquiring about payment holidays are not struggling to pay their bills and only a minority calling its switchboard have legitimate concerns about covering their costs.

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BREAKING: Up to 2.3 million tenants to default on their rent during crisis, says charity

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Shelter says its research among renters indicates that a quarter of tenants or 2.3 million people will lose their jobs and be unable to pay their rent over the next three months.

A quarter of renters say they expect to lose their jobs over the next three months as the jobs market contracts during the downturn caused by the Coronavirus, a leading charity has claimed.

The research by Shelter also reveals that these people will be unable to pay their rent if they lose their jobs, indicating just how precarious many low income renters’ personal finances are.

Worryingly for landlords, the research also indicates that up to 2.3 million are likely to join benefits system as they turn to the government to pay their rent, and that the creaking Universal Credits system will not be able cope.

Nearly a million extra people have already begun claiming Universal Credit since the Coronavirus crisis began, a tenfold increase compared to normal times.

Shelter points out that the gap between the housing element of Universal Credit and the rents that tenants pay in many areas of the UK will mean landlords will have little choice but to accept lower rent payments as tenants struggle to pay the shortfall.

Lowest third

The housing element only covers the lowest third of market rents in an area, meaning for families in a two-bedroom home, the shortfall is as high as £400 a month outside of London, and up to £1,227 in the capital.

Shelter is calling on the government to increase housing benefit payments so they cover the average cost of local rents. It says this emergency measure is essential to help tenants and landlords through the financial shock caused by the virus.

Polly Neate, chief executive at Shelter, said: “We’re facing an onslaught of people suddenly unable to afford their rent, at a time when people need to stay put and cannot safely move to a cheaper home.

“To avoid spiralling debt and needless evictions once the ban lifts, the government must increase the housing element of Universal Credit so that it covers the average cost of local rents.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Up to 2.3 million tenants to default on their rent during crisis, says charity | LandlordZONE.

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Today in politics: Coronavirus and flood insurance review

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New research has shown there has been a  fall in the number of buy-to-let (BTL) mortgage deals since the start of March 2020 as a result of coronavirus, with the government today publishing details of its of flood insurance review. Coronavirus impact on buy-to-let mortgages There has been a significant fall in buy-to-let (BTL) mortgage deals […]

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University waives rents for 1,700 students and urges private landlords to follow suit

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Rent ‘holiday’ is for students living in halls of residence, but both University of Lancashire and its student union have written to landlords urging them to do the same.

The University of Central Lancashire (UCLan) is urging private landlords to follow its lead by giving students a rent holiday.

The Preston-based university recently announced that it would waive final semester rents for students who have a UCLan accommodation after the Coronavirus pandemic closed down its campus, and it now hopes private landlords in the area will make a similar gesture.

The fee waiver applies to all these 1,700 students in
university accommodation, regardless of whether they have already moved out of
halls or continue to live there. 

Both the university and students’ union have written to
all university-registered
landlords including
landlords of HMOs, asking them to support students.

Vice-chancellor professor Graham Baldwin says while it can’t make the same decision for private third-party providers, it’s in discussion with them to see if they can agree to similar measures.

Waive fees

He says: “We
hope our decision to waive accommodation payments helps ease the financial burden
at this challenging time. As a university we are keen to support our students
as much as possible and minimise any disruption to their academic studies.”

A spokesman for the university tells LandlordZONE: “Some
private landlords are listening to our appeal, considering what they can do to
ease our students’ financial burden and make a difference during this difficult
time.

“We do however appreciate that some student landlords are
small businesses and decisions of this nature are not easy.” 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – University waives rents for 1,700 students and urges private landlords to follow suit | LandlordZONE.

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BREAKING: Legal ‘loophole’ in government’s evictions shutdown revealed

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Leading housing lawyer and NRLA policy director David Smith says recent High Court ruling opens up possibility of evicting some tenants during crisis despite ‘ban’.

Some landlords might still be able to evict
troublesome tenants during the crisis using an injunction, despite the current
Government restrictions.

If they can show a very real need for urgently
removing an occupier, courts could grant an injunction, according to David
Smith, policy director at the National Residential Landlords Association.

However, this would only apply to a non-Housing
Act tenant in extreme cases – a residential tenant whose tenancy doesn’t fall
within the Housing Act 1988 – often tenancies to companies or very high value
tenancies.

He tells LandlordZONE: “A need would usually
be something around anti-social behaviour, such as an individual refusing to
self-isolate, so threatening the health of others in a shared occupancy house.”

While nobody has yet tried this in the
private rented sector, it’s likely that someone will, says Smith: “I have a
client at the moment who may do this.”

The Government gave tenants more protection by making
changes using the Coronavirus Act 2020, suspending all possession cases for
three months until 30th October with a practice direction. But this
specifically exempts any claim for an injunction, he explains.

“This has raised the question of whether a landlord can obtain an injunction which requires a person to vacate a piece of land or not to trespass on it, thereby getting round the limitations of the practice direction.”

High Court

Smith points to a High Court injunction last
week to remove a highly disruptive and abusive woman from a London hospital. He
says this is an indication that it can be done in rare cases where action is needed.

“A landlord with a residential tenant who did
not fall under the Housing Act 1988 could potentially obtain an injunction if
that tenancy had been ended because the tenant would have lost their rights and
would now be trespassing.

“Exactly the same position would apply for a licensor who had terminated a licence to occupy a room in their own house or a room in shared multi-occupancy accommodation – assuming it was a real licence of course and not a sham.”

Read more about the evictions ban.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Legal ‘loophole’ in government’s evictions shutdown revealed | LandlordZONE.

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Coventry irresponsibly implementing selective licensing

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The NRLA have accused Coventry Council of being irresponsible for ignoring government coronavirus guidelines by going ahead with plans to implement a licensing scheme for private rented housing.

The Council intends to bring in a licensing scheme from 4th May despite government guidelines which advise that the introduction of new

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Landlords savage Coventry council as it proceeds with expanded HMO scheme despite Coronavirus

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The NRLA says it is ‘irresponsible’ to proceed with the planned scheme due to go live on May 4th as it will endanger both landlords and inspectors and its introduction paused until after the crisis.

Plans to expand Coventry’s HMO licensing scheme during the Coronavirus crisis have been described as irresponsible by the National Residential Landlords Association (NRLA).

The city is due to implement an expansion of its HMO scheme on May 4^th which will usher in regulation of an extra 4,000 properties including smaller HMOs.

Landlords of houses occupied by three or four tenants and all properties converted to self-contained flats that are wholly tenanted will be required to apply to the council for an HMO licence.

But the government last week issued guidance urging local authorities to delay implementing new or expanded schemes. Despite this, Coventry is to proceed, prompting the NRLA to write directly to the council and demand a delay.

“The guidelines are there to protect tenants and landlords from unnecessary contact,” says Chris Norris, its Policy Director.

“Where a licensing scheme is introduced,
landlords have to go into their properties to check that they meet the
licensing obligation and maybe need to carry out non-essential works. This
exposes them and the tenants to an enhanced risk of contagion.

“Several local authorities have done the right thing and paused the introduction of new licensing schemes in response to the crisis including Luton and Newcastle and we are asking Coventry to do the same.

‘Thoroughly irresponsible’

“It would be thoroughly irresponsible of the Council to ignore the guidelines and go ahead with their plans.”

Coventry initially tried to implement a city-wide selective licensing scheme but, after a consultation, decided not to proceed.

Instead, an Additional Licensing scheme for smaller HMOs was approved and it is this that is now due to go live.

The councils says: “Landlords will not have to perform any additional works or alterations to their properties as a result of their properties becoming licensable. 

“However, they will need to ensure that all of their HMO properties meet the relevant standards of fire safety and amenity provision.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords savage Coventry council as it proceeds with expanded HMO scheme despite Coronavirus | LandlordZONE.

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Tenancy expires during Covid-19 lockdown

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I am a landlord, having a 2 bed flat with 1 tenant. The tenancy agreement is due to expire early May.

The tenant says he doesn’t know if he can leave. He also just told me he can only pay half the rent as he lost his job.

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Landlords: ‘Don’t jump on the repayment holiday bandwagon’

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Warning is made by leading buy-to-let mortgage brokerage, which has claimed lenders expect most landlords to cover an rental shortfalls from their own savings.

A leading mortgage broker has claimed that most landlords who have contacted it about a repayment holiday don’t really need one, and urged them not to ‘jump on the bandwagon’.

Kent-based Mortgages for Business, which offers a national service and specialises in buy-to-let mortgages, says only a small percentage of recent landlord callers to its coronavirus helpline needed a mortgage payment holiday because they are in financial dire straits.

The broker’s Managing Director Steve Olenjnik also claims that most landlords have sufficient cash reserves to cover any rental shortfall should their tenants stop paying.

He also says that landlords who do request mortgage payment holidays could see their credit scores reduced and their ability to secure affordable home loans in the future.

Mortgage holiday

Somewhat controversially, Olenjnik also claims that those awaiting decisions on a mortgage application who then ask for a holiday on an existing loan may see the former turned down.

“We are having a lot of discussions with landlords around payment holiday requests,” he told Mortgage Strategy.

“Lenders expect landlords to be able to cover void periods under normal circumstances – where a property is empty, and a landlord is not getting any rent – so they will not take kindly to landlords trying to take advantage of them just to build up some cash reserves.  

On 19^th March the government revealed that it was to direct lender to give landlords mortgage holidays of up to three months after ‘recognising the extra pressures that face landlords’ during the crisis.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords: ‘Don’t jump on the repayment holiday bandwagon’ | LandlordZONE.

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12% of private renters have asked for a rent pause or reduction so far, research reveals

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New report from Opinium reveals the impact that the Coronavirus crisis is having on landlord and tenant relationships and finances.

New research published today reveals that landlords both fear that their relationship with tenants could become hostile due to the strain of COVID-19 and that 12% of all renters have asked for a rent reduction or payment pause.

A survey of 2,000 renters and landlords by
Opinium found that 62% are worried about a deteriorating relationship, while 73%
of landlords are also concerned their tenants won’t be able to pay all or part
of their rent.

Meanwhile, 70% worry that tenants will quit
their home, leaving them with an empty property, which is perhaps unjustified
as only 10% of renters have either had to voluntarily leave their home, move in
with friends or parents or ask for their tenancy to end earlier, rising to 25%
whose job has been affected.

Since the crisis, 12% of renters have already
asked for reduced rent or a pause in rent payments, rising to 25% of those with
affected jobs.

Most landlords are on their tenants’ side, as
the survey found 56% of tenants who’ve had to make a change to their living
situation say their landlord has been supportive.

However, 31% reckon their landlord hasn’t
been supportive, including 9% whose landlord wasn’t at all supportive when
having to make the changes.

Of all those renters who were working before
the outbreak, 25% have been furloughed, 17% have suffered a loss in earnings
and 14% have had their hours cut.

The research also found that as a result there’s considerable financial pressure on renters; 43% whose work has been impacted by the outbreak report that they’ve struggled to pay rent, bills or for food.

Read the report in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 12% of private renters have asked for a rent pause or reduction so far, research reveals | LandlordZONE.

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