Shock poll reveals public support for student rent suspension during lockdown

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A poll of over 9,000 people by YouGov has revealed 54% believe students who are not able to return to their accommodation due to the Covid lockdown should not have to pay any rent until the crisis ends.

The UK’s 1.8 million graduates have been caught out by Wednesday’s decision by the government to introduce a new lockdown, as many were staying with their parents following the festive break.

The severity of the new lockdown means many will not be able to return to their university digs whether in halls or the private rented sector.

The poll results are from across the age spectrum, rather than being skewed by young people who are more likely to be sympathetic. Approximately 50% of those between 25 and 60 years old said students should not be charged at all, rising to 60% of those between 18 and 25 year old.

And even 46% of Conservative voters among those polled agreed students needed total relief from rent payments during the lockdown, which is likely to carry on until at least mid-March.

Those polled were asked: “Do you think students who are unable to return to their student accommodation due to lockdown should still have to pay rent as normal or not?

Among the rest of those polled 30% believe students should be given a discount but only 5% said students should have to pay their in full.

Thousands of landlords and university accommodation suppliers are caught up in this crisis. See the results of the YouGov poll.

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Robert Jenrick extends the ban on bailiff evictions until 21st February

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The Communities Secretary, Robert Jenrick,  has announced renters will continue to be supported during the new national restrictions, with an extension to the ban on bailiff evictions for all but the most egregious cases until at least 21 February with measures kept under review.

The post Robert Jenrick extends the ban on bailiff evictions until 21st February appeared first on Property118.

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BREAKING: Government extends evictions for another six weeks

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The government has announced a further extension of the eviction ban for at least six weeks until 21^st February, at which point it will be reviewed.

Although this is cataclysmic news for the thousands of landlords waiting to evict tenants via a bailiff, the government has heeded the NRLA’s calls or a widening of the circumstances when evictions can go ahead.

It is understood that landlords will be able to enforce possession orders if their tenants are more than six months in arrears irrespective of when the arrears accrued and therefore no longer have to pre-date Covid.

Other enforcement exceptions remains in place including domestic violence and anti-social behaviour.

At the moment landlords can initiate possession claims via the court system and be granted orders after the courts re-opened in September, but since early November bailiffs in England and Wales have only been able to execute possession orders if they

“The repossessions ban is a sticking plaster that will ultimately lead to more people losing their homes,” says Ben Beadle (pictured), Chief Executive of the NRLA.

“It means tenants’ debts will continue to mount to the point where they have no hope of paying them off leading eventually to them having to leave their home.

“Instead the government should recognise the crisis facing many tenants and take immediate action to enable them to pay their debts as is happening in Scotland and Wales. The objective should be to sustain tenancies in the long term and not just the short term.” 

Retrospective

LandlordZONE also understands that the new six-month limit on arrears will be retrospective, so landlords who have court orders pending will not be able to proceed if their rent arrears are older than six months.

The announcement has been widely expected since Boris Johnson announced the new national lockdown on Monday, after which a growing chorus of political and housing figures and organisations have been calling for the government to act.

On Wednesday, Johnson hinted at a likely evictions extension, saying that the current ‘Christmas truce’ due to expire on Monday was ‘under review’.

Paul Shamplina of Landlord Action says: “‘This is some positive news and I worry about the backlogs but we await the final details. 

“Landlord Action has so many desperate landlords at Landlord Action that have cases ongoing now for over 18 months and are stuck at the final stage of awaiting an eviction date, with very little prospect of recouping the arrears.  Well done to the NRLA for campaigning for this.”

Oli Sherlock (pictured), Head of Insurance at lettings platform Goodlord, says: “Many landlords are now nearing breaking point. Scores are facing financial difficulties as a result of unpaid rent and ongoing mortgage costs, with a few facing uncommunicative tenants who are refusing to vacate properties even when leases come to an end (although this is a minority of tenants).

“Unless more support is put in place for those struggling, we can expect to see a large number of landlords withdraw their lets from the housing market over the next year. This will put pressure on a vital source of housing at a time of critical need. Decision makers must start thinking about how tenants and landlords alike can recover from these challenges during and following the stay on evictions.”

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LATEST: Evictions announcement expected as chorus grows for extension in England

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The Mayor of London Sadiq Khan has joined the growing chorus of organisations and public figures calling for an extension to the evictions ban due to expire on Monday.

Prime Minister Boris Johnson said on Wednesday that the current ban on bailiff evictions, which has been in place since December 11^th, was ‘under review’.

A government announcement on this is widely expected today or Monday following the new national lockdown announced earlier this week by Johnson.

Urgent action

Khan has said the government must take urgent action to protect renters from eviction and homelessness as new statistics show the number of Londoners reporting concerns about their landlord or letting agent more than doubled during the pandemic.

One in five complainants are now reporting an unfair eviction, latest City Hall stats show.

While many landlords have supported tenants throughout the pandemic, the latest stats from the mayor’s ‘report a rogue landlord or agent’ online tool demonstrate the way some unscrupulous landlords have taken advantage of the pandemic, with more than 1,400 complaints between march and December last year.

Khan says private tenants should have the same protection as commercial tenants who before Christmas benefited from an extension of a ban on evictions until the end of March 2021.

Leading figures

His call is backed by the Deputy Chair of London Councils Darren Rodwell (pictured), Ben Reeve-Lewis of Safer Renting and Dan Wilson Craw of Generation Rent.

“A third national lockdown will pile even more pressure on vulnerable renters who might have lost their jobs or are facing health issues,” says Rodwell.

“Being unfairly evicted in the middle of a surging pandemic is just not right. Renters need more protection so they are in the best possible position to get back on their feet when the economy reopens.”

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Will England follow Scotland and extend eviction ban to 31st March?

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The Scottish Government has announced the temporary ban on eviction orders will be extended until the end of March. Regulations will be laid in the Scottish Parliament on 14 January to extend the current ban, which is in place at present until 22 January.

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BREAKING: Scots reveal eviction ban extension – but will England and Wales follow?

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The Scottish government is to extend its evictions ban for another two months after the current temporary ban finishes on 22^nd January.

Regulations are to be laid before its parliament next week and the extended ban will apply to Level 3 and Level 4 Covid restriction areas, with the only exceptions being cases of serious anti-social behaviour, including domestic abuse.

But as no areas of Scotland are at less than Level 3, the ban extension is in effect a national one.

The new ban will be reviewed every three weeks to “ensure it remains necessary to protect against the spread of coronavirus” but will carry on until March 31^st.

Ministers say the extended ban is to provide renters with safe homes during the pandemic but also reduce the burden on local authorities, who have a duty to rehouse people made homeless through evictions, and will also make it easier for people to follow the guidelines during the current lockdown.

“In the case of serious anti-social or criminal behaviour – including domestic abuse – eviction orders can still be enforced,” says Housing Minister Kevin Stewart.

“We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic. Tenants in difficulty should engage with their landlord and seek advice on the options open to them.”

The announcement for Scotland will worry English and Welsh landlords, whose governments have in the past followed Scotland’s lead during the pandemic on evictions and other housing measures.

Read more about previous scots eviction bans.

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Short-lets landlords should get Covid relief as ‘hospitality’ businesses

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Short-term rental companies should be explicitly included in the latest lockdown grant scheme for retail, leisure and hospitality businesses, after many lost out on compensation for losing bookings last time due to technicalities over whether they could be classified as hospitality businesses.

The UK Short Term Accommodation Association (STAA) believes with the prospect of several weeks or months without an income, many small firms need grant funding to enable them to survive until the market can open up again.

It argues any business that derives the bulk of its revenue from managing short-term rentals should be considered a hospitality business and qualify for the grant scheme.

Eligibility was previously determined on the basis of what business rates are paid on the property where a guest stays, which meant professional operators were excluded; many property management companies were refused grants designed for hospitality companies because their premises aren’t listed as ‘hospitality and retail’ premises.

STAA chair Merilee Karr (pictured, below) says it’s imperative that legitimate businesses don’t miss out again on funding.

“The government has issued clarification regarding hotels and B&Bs but hasn’t included short-term rental properties in that and, because the grants are awarded at the discretion of local authorities, it can lead to a situation where short-term rental companies could struggle to access grant funding,” says Karr.

“All we are asking for is a level playing field across the whole of the hospitality sector.” 

It’s estimated that short-term rental businesses make up around 10% of the UK’s accommodation supply.

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Is new Government-funded mediation scheme for evictions ‘too little too late’?

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A government-funded national mediation service is due to begin that, it is claimed, will reduce the number of landlords and tenants fighting it out in court over evictions.

A tender has been out since late last year seeking a supplier able to provide the service, which will offer an online local court mediation service across the UK.

The multi-million pound contract is to last for six months as a pilot and, although expected to start next week, a Ministry of Justice spokesperson was only able to confirm to LandlordZONE that it would be ‘soon’ and that discussion between it and the housing ministry, which is involved in planning the initiative, ‘are ongoing’.

Their mediation service is designed to help landlords and tenants come to an out-of-court agreement between the initial exploratory hearing and their subsequent, ‘substantive’ possession hearing.

This, the government hopes, will help the courts reduce the volume of cases going through the full hearing process and help prioritise the most urgent and serious cases.

Organisations within the industry have been asked to tender but many have baulked at the short lead times required to organise a national service and the relatively low budget of £50 per mediation.

And one leading lawyer has registered her disquiet at the scheme. Diane Astin of Deighton Pierce Glynn (pictured) told the Legal Action Group website that the looming new mediation service “shows a fundamental misunderstanding of the nature of possession proceedings and what happens at the hearing,” she said.

Astin said lawyers and advice agencies already strive to achieve settlement and that the money being expended on the new government service would be better spent on legal aid for tenants in arrears, so they get early advice and avoid the claims being issued in the first place.

Mike Morgan (pictured) of the Property Redress Scheme says: “While we were aware of the tender, we did not bid as we have invested in our early intervention resolution service, which is achieving effective payment plans and negotiated vacation of properties by tenants without the courts needing to be involved.

“We wish the successful bidder the very best and offer our expert help if needed.”

The new service is likely to be used in approximately a quarter of the possession cases that come to court each month.

Paul Shamplina of Landlord Action says the government’s mediation service may be ‘too little too late’ because many landlords who come to court with possession claims are already facing many months of rent arrears which in many cases began before the pandemic started.

Morgan adds: “Mediation is highly successful but only if it is undertaken at the earliest opportunity possible. The longer you leave it the less efficacious it is.”

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To extend or not to extend, that is the question?

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The moratorium on stamp duty, with no duty payable in England for homes up to the value of £500,000, would save a buyer £15,000 on a £500,000 home, with a reduced rate above that price.

Despite the government’s previous announcement that there would be no extension to the Stamp Duty (SDLT) holiday beyond March, industry experts have been speculating that the new lockdown may just change everything.

Fortunately, this time the property sale and rental business has been allowed to function as normally is it’s possible to do, in the circumstances, allowing viewings, sales and lettings to proceed, at least until the situation is reviewed again in mid February.

There is always the possibility, according to comments made by the cabinet office minister Michael Gove, that this latest lockdown may not be lifted until March, just days before the amnesty is lifted.

The cliff-edge cut-off date this situation has created has resulted in a conveyancing scramble, where solicitors and town hall searchers are being overwhelmed with work and anxious property buyers and sellers.

Although buyers are still able to agree deals, and arrange house moves, they cannot be sure that completions will go through before the 31^st of March because of these backlogs and delays in the system.

Agents, surveyors and solicitors were lobbying government to extend the holiday by up to six months at the end of last year. This was when it could be argued their case was weak, with what appeared to be an improving Covid situation. Now the tables have been turned and many are optimistic that their case is strengthened.

A letter has been sent to the government on behalf of several property industry bodies by the big players in the industry, citing the compelling reasons why an extension to the moratorium would benefit the industry, the economy as a whole and importantly those people who are committed in the process of purchasing a property.

Andrew Montlake, managing director of mortgage broker, Coreco, told Property Industry Eye:

“Though the property market remains technically open, there will now be considerably more logistical issues for the simple reason that a lot of people will be working from home.

“Lenders, valuers and conveyancers are already experiencing bottlenecks and delays given the sheer amount of applications going through and the administrative upheaval caused by the latest lockdown will only serve to accentuate them.

“We would not be surprised if the Treasury makes an announcement this week about extending the Stamp Duty deadline to keep demand alive and give the property industry some much needed wiggle room.”

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Cross-sector alliance calls for Govt action on rent arrears crisis

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An alliance of the sector’s key landlord, letting agency and tenant advocacy groups has warned the government that the nation faces a mounting rent arrears crisis.

The National Residential Landlords Association, The Big Issue and Ride Out Recession Alliance, Shelter, ARLA Propertymark, the Nationwide Foundation, and StepChange the Debt Charity have jointly said that Ministers need to play their part in offsetting the affects of the pandemic on the sector.

“Many thousands of tenants and landlords across the country now face rent arrears due to the impact of the pandemic,” the statement says.

“Ministers have failed to address the core problem of debts which have built despite the financial package put in place so far. Indeed, the Chancellor confirmed that housing benefit will not be linked to the cost of renting for future years.

Muddle through

“Renters, landlords and letting agents cannot be expected simply to muddle through indefinitely where they face these financial difficulties. “The Government needs to develop an urgent package to help renters in paying off arrears built since March last year.

“Without further action, debts will continue to mount, making it far more difficult to sustain tenancies and keep renters in their homes after the pandemic.”

The six organisations may need to be careful what they wish for – to date the government’s reaction to calls such as this one has been to extend or tighten the existing eviction restrictions while dismissing calls for the kind of tenant or landlord rent arrears loans already in operation within Scotland and Wales.

Only yesterday Boris Johnson said the government was reviewing the current evictions rules, hinting at an extension to the bailiff action suspension in place until Monday 11^th January.

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