Landlords & Tenants to Benefit from the Payment Holiday?
The Government has announced a range of measures to protect renters and landlords during this turbulent times, including extending the 3 month mortgage payment holiday to buy to let investors and a plan to stop evictions too.
Housing secretary, Robert Jenrick confirmed that landlords will also be able to apply for a payment holiday on buy to let mortgages under the emergency coronavirus legislation currently being developed.
Although welcomed by the Residential Landlords Association and the National Landlords Association, which said the payment holiday “will take a lot of pressure off landlords enabling them to be as flexible as possible with tenants facing difficulties with their rent payments”, others aren't so sure how it will work in practice.
The Government have clearly stated that no tenant who has suffered as a result of the coronavirus outbreak will be evicted, and neither will any landlord face debts they cannot afford. In addition, there will be no new possession proceedings during the crisis.
However, many landlords and agents feel that without proper guidelines and rules in place, there’s no reason for tenants to pay their rent each month from now on as they have almost a "free rein" to stop paying in full knowledge that the landlord can’t evict them. Furthermore, it will be interesting to see how landlords will be able to recoup any lost rental income in the future
Interesting times ahead, for sure, in more ways than one…