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Monthly Archive March 2020

What does coronavirus mean for landlords?

The government is changing legislation for landlords by protecting renters from eviction for three months, in an emergency coronavirus legislation passed by Boris Johnson yesterday.

Mr Johnson said during the announcement: “We will be bringing forward legislation which will prevent renters suffering no fault eviction, that kind of thing, and protect people who face difficulties through no fault of their own.

“Nor can you penalise people for acting when they follow government advice. Everybody is entitled to protection, that’s what we will provide.”

Leader of the opposition Jeremy Corbyn called on the Prime Minister to give further assurances to the 4.6 million tenants privately renting households in the UK, in “the interests of public health”, to promise that renters who are ill, recently jobless or self-isolating won’t become homeless when the pandemic passes.

This plan was set out by Housing Minister Robert Jenrick, and is spearheaded by a ban on evictions for tenants who struggle to pay rent for the next three months. To support this, the three-month mortgage holiday recently announced to homeowners affected by the virus will now include buy-to-let mortgages too. The National Housing Federation, made up of housing association reps in England have confirmed this change too.

SpareRoom director Matt Hutchinson said: “We know that the situation is complex. Many landlords are reliant on their income to survive, so simply enforcing a rent holiday could just shift the problem rather than resolve it. But where landlords have to buy mortgages, banks should be able to offer them the same deal as homeowners, to pass on to their tenants.

“We’re in this for the long haul it seems and our housing market was already overloaded with unaffordability before we went into this, so the government should do everything it can to support people with the most basic need of having a home.”

This should mean landlords are safe from financial worry, as they no longer have to pay their mortgage, but the lack of rent may be an issue to some.

 

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