Rinlgley group logo
  • Home
  • Who We Are
    About Us Our People Awards Savings for Clients Results for Clients Our Impact & ESG Community & Charities Market Overview Leasehold Reform Campaign Money Back Guarantee
  • What We Do
    • Block Management
      • Block Management Overview
      • for RTM Companies
      • for Freehold Management Companies
      • for Resident Management Companies
      • for Estates of Houses
      • for Freeholder Investors
      • Ground Rent Collection
      • How to Change Agent
      • Block Management Packages
      • Can't Afford an Agent?
      • Legal work & Tribunals
      • Section 20 Major Works
      • Ringley's Top 10 Tips
      • Staff on Site
      • Moving or Buying?
      • Report an Incident
    • Asset Management
      • Asset Management Clients
      • Asset Management Overview
        • Asset Management Overview
        • Stabilised Assets
        • Project Monitoring
        • Mobilisation & Lease up
        • Accounting & Reporting
        • ESG Consultancy & Implementation
        • Brands & URLs for sale
        • UK Build to Rent
          • UK Build to Rent
          • Smart Technology
          • Strategic Marketing
          • Resident Experience
          • Tenancy Management
          • UK Later Living Opportunities
            • Later Living Opportunity
            • Smart Technology
            • Strategic Marketing
            • Resident Experience
            • Tenancy Management
            • UK Coliving
              • UK Coliving
              • Asset Managers TechStack
              • UK Student housing
                • Student Housing
                • Site Finding/Digital Land Search
              • Law
                • Legal Services Overview
                • Our People
                • Recommendations
                • Right to Manage
                • Lease Extensions
                • Freehold Purchase
                • Absentee Freeholder
                • Court Appointed Manager
                • Conveyancing
                • Service Charge/Rent Arrears Recovery
                • Company Secretary
              • Valuation
                • Valuation Overview
                • Company Accounts
                • Lease Extensions
                • Freehold Purchase
                • Rent Reviews
                • Development Valuations
                • Purchase & Mortgage
                • Insurance Valuations
                • Expert Witness & Litigation
                • Tax, Trusts & Accounts Valuations
                • Trading Business
                • Compulsory Purchase
                • Residential Valuations
              • Engineering
                • Engineering Overview
                • EWS1 Consultancy
                • Asbestos
                • Contract Administration
                • Fire Assesment
                • Homebuyer Survey
                • Building Survey
                • Schedules
                • Party Wall Matters
                • Principle Designer
                • Disability Access Audits
                • Small Building Works
              • Finance
                • Finance Overview
                • Get Accounts Quote
                • The Law & Property Accounts
                • Industry Update
                • To audit or Not?
            • Insights
              Property Management Articles Property Management Blogs Rental Market Blogs Customer Comments FAQ - Ask Our Experts
            • E-books
            • Portal Login
            • Get In Touch
            • Clear Filter
            • Property Blog INDEX
            • PlanetRent Blog

            Will there be a post-pandemic rental crisis?


            Responsive image


            With an estimated 2.6 milion tenants at risk of arrears, is there a rent crisis looming?

            There is a “looming crisis in the rental sector” due to the financial hardships being faced by both landlords and tenants as a result of the coronavirus pandemic. This was the verdict of the Housing, Communities and Local Government Committee, which published the interim report in May from its call for evidence to examine the effect of the pandemic and Government support for tenants. Committee chair, Labour MP Clive Betts, told the BBC last week that the UK is currently in "the lull before the storm."

            Key points from the committee's report are:


            • A recommendation to bring forward legislation to amend the 1985 and 1988 Housing Acts to allow judges to use discretion where a tenant is in rent arrears due to the coronavirus crisis for the next 12 months at a minimum. Discretion could include consideration of whether a pre-action protocol has been complied with.

            • The Government must accelerate its plans to introduce the proposed Renters’ Reform Bill to Parliament and abolish ‘no-fault evictions’ under section 21 of the Housing Act 1988 within the next 12 months. By amending the Act to allow judges to exercise discretion, the Government will have time to deliver a Bill that provides greater security for tenants.

            • The Government must ensure that the Local Housing Allowance (LHA) rate is set at a level that reflects real market rents and ensures those in need are able to afford properties in their areas.

            The committee believes that unless the Government amends existing housing legislation, its plans to introduce a pre-action protocol to the private rented sector will be toothless. This poses the danger of a cliff edge of evictions once the moratorium on possession cases ends.  

            Research from the Resolution Foundation published last weekend reveals that one in eight private sector tenants have fallen into rent arrears to-date. And as the impact of the pandemic on the UK economy really starts to bite, Citizens Advice calculates that around 2.6 million tenants could find themselves in rent arrears.

            The National Residential Landlords Association told Landlord Today that more than half of its members have already experienced some combination of rent payment problems or unanticipated void periods. Some landlords who already had possession cases for rent arrears going through the courts prior to the ban, could find themselves trying to cover more than a year’s worth of rent if the courts are unable to resume existing cases from the planned date of 25 June. So it is calling for a “careful re-opening of evictions needs”. 

            Of course, landlords who do find themselves in financial difficulty can ask their lender for a mortgage holiday, but the reality is that this only pushes payments further down the line – and may ultimately impact their credit rating.

            In London, more than 2,500 households have agreed not to pay their rent thanks to a campaign by the London Renters Union. The LRU is calling on tenants to withhold their payments to landlords if they find themselves in financial hardship One activist told Landlord Today that the government is prioritising landlords’ profits over renters’ survival. “Right now, it must suspend rent, cancel rent debt and make the eviction ban permanent, she said. “Otherwise we’re headed for a chaotic rent debt and eviction crisis.”

            However, the official guidance from the MHCLG remains clear.  Landlords and tenants should work together to address any concerns and find solutions to overcome rent arrears, such as an affordable repayment programme. This is very much our view too.

            But will this approach be enough to prevent the pandemic causing widespread problems for landlords and their tenants? What do you think?



            01/06/2020
            Author : Mary-Anne Bowring

            Social
            Facebook Linkedin Twitter Blogger

            Subscription

            Keep up to date

            (Weekly, fortnightly or monthly)


            To find out more what we do with your data, please read our Privacy Policy


            Insights, Blogs, Research, E-Books

            Landlord blog bg

            Landlord blog
            Read landlord blog
            Property blog bg

            Property blogs
            Read property blogs
            Articles bg

            Property articles
            Read property articles
            E book

            E-books
            Read E-books
            Facebook footer Instagram footer Linkedin footer Twitter footer
            Facebook footer
            Instagram footer
            Linkedin footer
            Twitter footer
            • Ringley Group
            • About us
            • CSR
            • ESG
            • BusyLiving
            • PlanetRent
            • Fire door inspection
            • Talk to us
            • Careers
            • Ask a Question
            • Insight
            • Articles
            • Blogs
            • Subscribe
            • What we do
            • Asset Management
            • Block Management
            • Facilities Management
            • Property Law
            • Surveying / Valuation
            • Building Engineering
            • Financial Services
            • Managing Agents
            • Block Management Locations
            • Co-working
            • Offices
            • London
            • Ringley House
            • 1 Castle Road
            • London
            • NW1 8PR
            • T: 0207 267 2900
            • Manchester
            • 11 Swan Street
            • Northern Quarter
            • Manchester
            • M4 5JJ
            • T: 0330 174 7777
            • Cardiff
            • 122 Bute Street
            • Cardiff Bay
            • Cardiff
            • CF10 5AE
            • T: 0330 174 7747
            • Email: solutions@ringley.co.uk
            • Emergency line 1: 0207 428 2056
            • Emergency line 2: 0207 267 2900
            • Report incident
            Privacy Policy
            Ringley Staff
            Ifsm Irpm member New iso Arla licensed Ombudsman services Rics vertical

            All content © copyright 2022. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
            Terms of use | Privacy policy | Modern slavery act | COVID-19 risk assessment