Coronavirus: Industry reaction to eviction ban

As the coronavirus crisis continues to affect all lives and areas of industry across the UK, the government is facing a monumental task to lessen the impact by rushing through new laws and legislation.

Related topics:  Landlords
Warren Lewis
19th March 2020
To Let 556

Yesterday evening, following mounting concern from landlords and tenants, Housing Secretary Robert Jenrick confirmed new measures to protect them, including extending mortgage relief to landlords and suspending evictions for renters who fall into financial difficulty as a result of the outbreak.

As you would expect, the property industry was quick to react to the news. Here's what they're saying:

Becky O’Connor, Personal Finance Specialist at Royal London, said: “Yesterday’s announcement removes some worry for vulnerable renters that they could lose their home.

“It means tenants should no longer feel dependent on the compassion – or the ability of their landlord to take a prolonged hit on rental income. With so many millions of people, including families with children and older people, in private rented accommodation, this attitude of leniency and compassion must continue.

“Landlords too will benefit from this clear support.

“Further guidance for those who may be affected for longer than three months would be welcome. The key to all of this working will be that the lines of communication between tenants, landlords and letting agents are open and there’s a desire to work things out together.”

David Cox, Chief Executive, ARLA Propertymark comments: “We are very conscious of the plight of tenants in these difficult times and appreciate any Government action to help those affected by the current situation. Letting agencies rely on rental payments and therefore Government must help to ensure agents can maintain their current service levels during any period where rent is not being paid. Specifically, we are calling on Government to extend the retail discount on business rates to estate and letting agents.”

Matt Downie, Director of Policy and External Affairs, Crisis, said: “This is a hugely welcome announcement. While we await the detail, we hope this means anyone served an eviction notice will not be left facing homelessness as a result of the pandemic.

“We appreciate that this needs to be a workable solution for renters and landlords, but would stress that any repayment plan must be affordable for tenants. If someone loses their job because of the outbreak and has no income coming in, they cannot be faced with intolerable levels of debt once these emergency measures are lifted.”

Andy Foote, director at SevenCapital, comments: “This evening’s measures announced by the Government will be welcomed by landlords and tenants alike. We heard measures yesterday designed to protect landlords through mortgage relief over a period of three months. It’s extremely good news, and I’m sure there will be thousands who will breathe a huge sigh of relief, to hear that any renters affected, who as a result are unable to pay their rent during this period will also be protected.

“It’s also highly encouraging to see that this legislation has been extended to both the social and private rented sector, where there are many landlords and tenants who may be impacted by these events and unsure about their payments in this unprecedented situation.

“During a tough period of time, as the Prime Minister himself said, “it would not be right for people to be penalised as a direct result of following government advice”.

“The information that appears to be missing, however, with regards to mortgage relief, is whether landlords who run their properties through limited companies will be protected under this legislation or whether there are alternate business measures being put in place that will cover this.

“We await further developments over the next few days.”

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