Former shadow chancellor urges tenants to break legally binding rental contracts

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John McDonnell is the most high profile politician to back a campaign urging renters to stop paying their rent if they need to prioritise food and other living expenses.

Former Labour chancellor John McDonnell is backing a call
for tenants to break legal contracts and stop paying rent.

Along with a group of union leaders and MPs, he’s urging
renters to prioritise essential spending instead of rent.

McDonnell says: “Renters are facing immense worry and
hardship because of the pandemic. Radical action is needed to support them and
nothing should be ruled out including suspension of rents, rent controls and of
course, the longer term supply of the decent homes needed.”

London Renters Union is heading the charge to organise a
rent strike movement, following the lead of activists in the US and Australia.

It wants people to pledge online at www.cantpaywontpay.uk to withhold enough of their rent to meet their
basic needs, including food and bills. Its open letter has been signed by
Labour MPs including Clive Lewis, Kate Osborne
and Ian Byrne, who want rent payments suspended during the crisis and
the cancellation of rent debt.

The union says millions of people feel enormous
pressure to prioritise rent over buying food. It points to its recent
YouGov poll which discovered that two-thirds of people agree that there are
circumstances where those who’re struggling to make ends meet should stop
paying rent.

A spokesman adds: “We are ready to take
further collective action if the Government fails to adequately address the
growing Coronavirus rent crisis.”

Another campaign, backed by Open Labour and Momentum, is calling on the Labour Party to adopt a cancel the rent policy, and has been signed by thousands of members.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Former shadow chancellor urges tenants to break legally binding rental contracts | LandlordZONE.

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Scottish private rental market faces collapse unless ALL landlords are offered Coronavirus loans

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Two leading industry organisations have made the claim, saying government is currently only offering single-unit landlords the loans at the moment.

Scotland’s rental sector is at risk of
large-scale collapse unless larger portfolio landlords are offered help from
the government’s loan scheme, say landlord and housing groups.

Landlords in the region can now apply for an interest-free
loan with deferred payments if their tenants are having difficulty making
payments because of the Covid-19 crisis.

The scheme covers 100% of the rental income from one property, however, the Scottish Association of Landlords (SAL) and Chartered Institute of Housing Scotland believe many tenants could be left without homes as struggling landlords exit the sector.

SAL chief executive John Blackwood says. “A small-scale landlord operates the same way as other SMEs, some of which may be entitled to government support for each of their separate outlets.

Rent arrears

“We would ask for a similar position for
landlords, even if this was on a sliding scale for additional properties and
where the impact of rent arrears can be evidenced.”

He suggests that landlords
with more than one property should be made to declare that their business doesn’t
qualify for any of the other coronavirus support available, such as the job
retention scheme, business grants, business rates holiday or self-employed
support.

“This would quickly and
easily achieve the same goal but ensure landlords who need support do not slip
through the cracks,” says Blackwood.

He adds: “Debt worries will
make landlords less likely to use this support, leading instead to them selling
up and exiting the sector, reducing housing supply at a time when it is most
needed.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Scottish private rental market faces collapse unless ALL landlords are offered Coronavirus loans | LandlordZONE.

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‘Retail rents could drop by 50% after Coronavirus’

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Leading commercial property agency makes prediction, claiming that social distancing, lower footfall, bankruptcies and online competition will make lower rents inevitable as retail and leisure margins shrivel.

Retail rents could reduce by up to 50% in some areas following the Coronavirus pandemic, a leading commercial property management company has warned.

Adam Diamant, who runs London estate agency and surveying firm Land Commercial, says the downturn in footfall and the continuing ban for many leisure and food businesses will be the final nail in the coffin for thousands of retailers, and that 2020 is shaping up to be a write-off for many landlords.

Diamant should know. Started by his father, his company has grown into one of the largest commercial property management firms in London but is now caught between tenants looking to reduce costs and landlords who are not keen to grant waivers or holidays.

“Many of our more sensible landlords choose to opt for deferments which I think is the most pragmatic way out of this crisis,” he says.

Land Commercial’s portfolio includes about 30% retail, office and light industrial while the rest is block management of leasehold apartments.

“The past few weeks have been pretty horrendous as the requests to defer or waive rent began coming in via phone and email as soon as the lockdown was announced,” he says.

But while he has no beef with tenants who want to plan for the future, Diamant is less impressed by those who were due to pay their quarters’ rent on 24/25^th March but who contacted his company as soon as the lockdown happened on the 20^th to say they couldn’t afford their rent.

No excuse

“When they’re paying in arrears there’s no excuse,” he says. “There’s lots of genuine people, but there are others who are taking advantage of the situation.

“Corporates tend to be aggressive and tell us what they are doing and cleverly word it, saying they are taking a rent holiday.

“They are still negotiating, it’s just that they feel they have the power because of who they are and can dictate terms.

“But when you’ve got a major national retailer like Poundland claiming they can’t pay the rent but have customers queuing around the corner at their store, it’s hard to fathom.”

Consequently, Diamant says some of his landlords are not being flexible, but, on the other hand, others are going the extra mile. This includes one who owns an arcade of 14 small shops who has given her tenants a two-month rent and service charge holiday.

“By overall I think many people under-estimate what a huge problem Coronavirus is going to be for the retail property sector,” he says.

Read more about commercial rents during the pandemic.

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New Waltham Forest property licensing scheme

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The majority of landlords with rental properties in the London Borough of Waltham Forest must now obtain a property licence in order to continue to let their property lawfully. It comes as a new five year selective licensing scheme was introduced in the Borough on 1st May, covering 18 out of 20 wards. Only the […]

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Buyer asking for further reduction due to current situation?

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Just before the pandemic we had an offer for a Leasehold Maisonette which we advertised and we accepted a reduced offer. Since then he has asked for a further reduction of 5K due to the uncertainty of the current market promising to exchange contracts without any delay.

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Correct phone line cable?

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I am planning on inserting a phone cable in a property before putting the carpet down, but am still some weeks off completion of the property.

Does anyone know the current recommended cable to go in for a phone?

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How to avoid Inheritance Tax (For Landlords)

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Mark Alexander of Property118 talks to Ranjan Bhattacharya about options for landlords to plan for business continuity and protecting their legacy for their bloodline from inheritance tax and other risks such as divorce.

The video below also includes:

• Essential inheritance tax advice
• Property investors tax advice and
• buy to let landlords tax advice



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Hero Landlord of the Week #4: Monckton Properties

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The landlord, which manages residential and commercial properties in Cheshire, has donated £30,000 to help two local charities including a local Coronavirus response fund.

North West
landlord Monckton Properties is making a big impact on its local community
during the crisis with practical help and a cash injection.

Owned by the
Tatton Estate, it manages a wide range of residential and commercial properties
around Knutsford and has donated
£30,000 to Cheshire Community Foundation’s Cheshire and Warrington Covid-19
Response Fund.

The foundation
raises funds to support hundreds of small charities and voluntary groups across
Cheshire and Warrington, connecting people and companies who want to make a
difference with those needing help.

Zoe Sheppard, CEO of Cheshire Community Foundation (pictured, above) tells LandlordZONE: “We’ve had a lot of requests from food banks who are supporting many people who’ve not had to access support before but have now been furloughed or had their working hours reduced.

“We’ve also had requests from charities needing help with
IT services, helping bereaved people and those suffering domestic violence and
with their mental health. We’re supporting thousands of people in the region and
this fantastic amount of money will help us do that.”

The foundation has also received cash support from
ForViva Housing and Sheppard says any other landlords thinking about making a
donation during the crisis should give money in this way.

“We’ve received a lot of fraudulent applications –
donating through us gives you the confidence that the money will go where it’s
needed,” says Sheppard.”

Monckton Properties and the Tatton Estate is also helping
tenants whose livelihoods are threatened by making vacant properties available in
Knutsford and neighbouring areas, and by offering free parking behind Canute
Place and Knutsford Heath.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Hero Landlord of the Week #4: Monckton Properties | LandlordZONE.

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Coronavirus: Your video guide to the new letting rules

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Legislation changes this week have seen the housing market re-opened, with landlords now permitted to hold viewings and allow tenants to move in and out of rental homes. While this is welcome news, it is imperative that landlords follow government guidelines on how to do this safely to protect themselves, their tenant and their families.  […]

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Activists Urge Tenants to Stop Paying Rent

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Damien Gayle at The Guardian reports this morning that “Activists urge Tenants hit by Corona Virus Crisis to stop paying Rent” Click here

I have just sent this reply:

Dear Damien,

I read your article with interest as I am a small landlord currently coping with the Corona Virus outbreak impact on my business and my tenants and have been helping several tenants to explore their options with government support at this very difficult time.

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