Covid Non-evictions Impact on Landlords
The government has ordered a rule change that means courts will continue not to hear repossession claims by landlords until 20 September. Can you imagine having a substantial portfolio of rental properties and now tenants can get away without paying. Arrears have always been a costly proposition, however the current situation can ruin landlords!
Landlords in the UK will also be required to provide tenants with six months’ notice, rather than three currently, until at least the end of March, unless the case involves a serious issue, such as antisocial behaviour or domestic violence. When cases do resume, courts will prioritise the most serious cases involving antisocial behaviour and other crimes, and those where rent has gone unpaid for more than a year and landlords would otherwise face unmanageable debt.
The housing charity Shelter said by the end of June about 174,000 renters had been warned by their landlords that they were facing eviction. Landlords have been left powerless in exercising their legal right to deal with significant arrears unrelated to Covid-19, antisocial behaviour and extremely disruptive tenants.
Compare renting to students or working tenants versus Social Housing. I mean LHA, councils, charities or Asylum seekers. My portfolio is just this. My counterparty for the most part is the government. The actual tenants in good times are not making money or in bad times losing money. The government supports them or charities support them. These social tenants have become Blue Chip tenants.
Who would have thought? Who would have thought you can not pay your rent for 6 months plus and (in the short run) get away with it. Crazy Times!!!!
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