Government rules out rent breaks for tenants

The Government has ruled out introducing rent holidays during the coronavirus pandemic.

Crossbench peer Lord Taylor of Warwick had posed a written parliamentary question asking the Government if there were any plans to issue a rent break for tenants affected by the coronavirus as part of its package of measures amid the virus outbreak.

But responding on the Government’s behalf in the House of Lords, Baroness Bloomfield of Hinton Waldrist, appeared to rule this out.

She said: “Emergency legislation has been taken forward as an urgent priority so that landlords will not be able to start proceedings to evict tenants for at least a three-month period.

“As a result of these measures, no renters in private or social accommodation need to be concerned about the threat of eviction.

“As such, the Government does not believe a ‘rent holiday’ is necessary at this stage.”

The National Residential Landlords Association (NRLA) has backed the Government’s stance, adding that the buy-to-let payment breaks on offer to landlords should also benefit tenants as it should only be used where renters are having trouble making payments.

Ben Beadle, chief executive of the NRLA, told EYE: “The Government has been clear.

“The buy-to-let mortgage holiday is not a green light to all tenants not to pay their rent.

“It enables landlords to provide flexibility where tenants are genuinely struggling to pay their rent as a direct result of the coronavirus outbreak.

“A comprehensive package of measures has been put in place to support incomes, including increasing the Local Housing Allowance and the Universal Credit standard allowance to support tenants to continue paying their rent.

“This should be accessed as much as possible before any talk of deferring rent payments.”

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8 Comments

  1. Gromit

    Typical namby pamby response from NRLA – looks like the new organisation is just following in the footsteps of its predecessors.

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  2. Agent2211

    Is it not then necessary if a Landlord is taking a payment holiday on a buy to let, to allow tenants rent relief? Or are they able to take the holiday and still expect full rent?

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  3. Will2

    I am not sure what you are saying here?  The landlord can ask for a DELAY only in paying his mortgage liability, potentially for 3 months.  This will extend his payments by 3 months (extending his mortgage term) or he will have to increase his payments over the  term to cover the temporarily delay in his payments.  The tenant on the other hand is not entitled to avoid payment of their rent .  They can in effect delay it by 3 months (without eviction) as LL’s can’t apply for possession for  the next 3 months.  The debts will build up if they do not pay their rent. Delaying their payment will make it even harder to catch up once this event is over and drive more to loose their homes.  If they can’t afford their rent they need to IMMEDIATELY seek benefits from the DHSS & local council who are funded to deal with these problems.  Landlords have no funding and are NOT a social security function.  The real fear is this has all been made by politicians who have left the feeling that there is some kind of rent holiday – which there is not.  MORE BL**DY POLITICAN SPIN!!!!  Of course the chartity cowboys are out there jumping on the band wagon to raise more funding for the annual bun fight and bad mouth ALL landlords.  MORE POLITICAL SPIN!  THERE IS NO SCHEME FOR RENT RELIEF and the government are not funding any such scheme.

     

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  4. Ryan Baker

    This will a massive problem. Even possessions which were granted and bailiff appointments have been postponed. A tenant has not paid for 3 months and it took 4 months from start to finish to come to the Bailiffs appointment fixed for next week. Received letter that the bailiffs appointment can not happen next week. Mr Tenant will now stay another Three months free. What makes anyone think that the said tenant will pay now up as no case can be submitted for eviction. He literally stays free for another 3 months. They will max get a CCJ… as if some tenants  are bothered about that …

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    1. Will2

      Ryan see my suggestion listed under Will2

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  5. jeremy1960

    I see our “friends ” from shelter are advertising on TV for more cash, despite getting millions from gov. Asking for cash to bash landlords though not to house people. I just hope this lot lose all their funding and disappear!

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  6. Will2

    You will need to check the figure but if you tenant owes you more than £5000 which he will given the governments scheme once you have your ccj you could apply to make them bankrupt which will effective screw their lives for, I think, about 6 years.  It will cost to do it but at least it will stuff them completely and make their life extremely difficult. Who would give accommodation to a bankrupt? I would use this if the tenant was a scumbag as opposed to just falling on hard times.

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    1. Ryan Baker

      Sadly some rouge landlords/agents would give them Accomodation as they somehow find a place to live. They also just become homeless with kids and the councils put them up in temporary and eventually permanent accommodation…. less a working professional in certain fields… most don’t give a damn if they have a CCJ nowadays either. They’re either doing hardcore labour or working in shops etc. Most of their employers don’t ask for a credit report while giving them work… there are far less consequences of not paying rent for renters nowadays… the duration ,  costs, hassle is so cumbersome that most landlords think it’s not worth chasing anyone for a few 1000s. From start to finish it normally takes 2-3 months till bailiffs arrive. The tenant walks away. Then one is applying again to recover the outstanding dues… where to find a tenant after that if they move to another city , shift jobs etc… yes one can claim and use person finding services. Again time and money consuming…

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