We are in uncertain times with changes the novel coronavirus outbreak has brought to our daily lives. Retail and leisure sector companies are under a great deal of strain and this is having a direct impact on their staff, who are facing shorter hours (and possibly pay) and redundancies.
Many of those staff are in the 4.6 million households renting in the private sector. Understandably renters are worried about how they will pay their rent during this current crisis. if they cannot work due to illness or lose their job.
The government announced on 18 March 2020 that it will push through legislation to support those in the private rented sector affected by the coronavirus outbreak. Whilst the meat on the bones of this legislation is awaited it is expected to include a suspension of new evictions from private rented accommodation during the crisis and a stop to new possession claims being issued in the courts.
There is no doubt that the UK is seeing unprecedented challenges and these measures are being put in place to ensure that tenants are protected during this time. However, it does leave landlord's facing their own uncertainties.
The government is expected to extend the 3 month mortgage payment holiday to those with Buy to Let mortgages, which will go some way to alleviating the pressure on buy to let landlords. However, this doesn't necessarily assist landlords with smaller portfolios whose rent is their only income. These landlords may end up relying on other government benefits to manage the income shortfall.
The government has said that once the crisis is over it expects landlords and tenants to work together to establish affordable repayment plans, taking into consideration individual circumstances. This is of course sensible and in accordance with how the courts expect parties to behave in disputes.
In my view, that dialogue should start as soon as possible with landlords reaching out to tenants to understand their financial position so they can make financial plans of their own, and secure agreement so that neither side loses out in these unprecedented times.
For advice on residential landlord and tenant issues please contact Hollie Wright of Howard Kennedy on 0203 755 5780.
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