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Em Morley

Landlords concerned as students unsure whether they need to pay rent

Published On: March 26, 2020 at 9:18 am

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Categories: Landlord News

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students unsure whether they need to pay rent

With many students choosing to return to their family homes to self-isolate, this has created another concern for landlords and letting agents.

With some students believing that they won’t have to pay rent as they are no longer living in the accommodation, this could lead to an increase in arrears for landlords.

Giles Inman, business development manager at the East Midlands Property Owners Group, representing around 600 landlords in the city, informed Nottingham Post: “We are getting students contacting landlords saying they are moving back to their parental homes and some of the students are saying ‘do they need to pay any more rent?

“A tenancy agreement is a legal contract. If the landlord pursues the student, well, we do not want to go down that road. It is all about being in it together.”

Landlords are being urged to remain calm by lettings and property management company Student Housing. Director Marcus Askam-Yates points out that the government is still issuing student loans, so there is no reason for university students to stop paying their rent.

Askam-Yates said: “I guess we, like a lot of agencies, have had several phone calls and emails from concerned landlords, worried that their rental income will decline during the current situation.

“We have reassured them that as all tenants have signed legally binding contracts with us. Students are still able to live in their homes properties as normal, without additional risk. The government has advised against non-essential travel, and so many of our tenants have stayed in their accommodation. 

“Of course, the tenancy does not require the tenant to physically reside within the property, and it is their right to vacate their rented property, but the tenancy agreement remains unaffected. Landlords have to keep to their obligations under the tenancy, and it’s expected that tenants will adhere to their obligations too.”

“We have had several students ring us about what happens to their rent if they decide to leave their home temporarily and if a discount will be issued if they no longer live at the property. 

“Most universities are still offering online or remote learning and Student Finance has confirmed that tuition and maintenance loan payments will continue to be issued, so the vast majority of our tenants understand that they need to continue to pay rent in line with the tenancy.

“As all student tenants are still expected to pay rent, the vast majority of landlords will see no changes to rental income and should have no issues paying mortgages each month.

“We understand that some students use their part-time jobs to top up the loan payment in order to pay their rent. In these circumstances, we’re asking guarantors to step in and provide rent guarantees or offering deferred payment plans to the tenants as the response to the pandemic unfolds.

“Tenants suffering financially as a result of COVID-19 should contact their agent for a payment plan as soon as possible.” 

Scotland Taking Harsher Approach to Westminster’s Eviction Ban Plans

Published On: March 25, 2020 at 10:40 am

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Scotland Taking Harsher Approach to Westminster’s Eviction Ban Plans

Landlords in Scotland could be banned from evicting tenants for the next six months if their plans are approved.

Scottish MSPs want to make evictions for private and social renting tenants illegal for the next six months in light of the COVID-19 pandemic which has left many tenants out of work and unable to pay their rent. 

Communities Secretary, Aileen Campbell says that the Scottish Parliament will use emergency powers granted under the Coronavirus Bill to prevent people affected by the outbreak from losing their homes. 

This is a stark contrast to the UK government which has been accused of breaking its promise to end evictions during the outbreak period, instead merely extending the eviction notice period from two, to three months. 

Dame Gillian Guy, chief executive of Citizens Advice, said: “Simply extending notice periods to three months cannot be seen as ‘job done’. It means that people dealing with unimaginable financial uncertainty still face the prospect of being served with an eviction notice.

“Over the coming days, the government must keep their promise and add to these changes to make sure no one loses the roof over their head as a result of coronavirus.”

Scotland on the other hand seems to be going beyond the initial promise, once again demonstrating a clear difference in priorities between a Conservative UK Government and the SNP’s own policies. 

In the Scottish Parliament yesterday, Aileen Campbell said: “There should be no eviction as a result of Covid-19.

“Our emergency legislation will have provisions to ensure there will be no evictions from the private rented sector or the social rented sector for six months.”

The First Minister, Nicola Sturgeon, also supported proposed legislation to protect all types of tenants during the Covid-19 outbreak.

She commented: “Nobody should be evicted from their home as a result of this crisis and I will make that clear at every opportunity.

“We’ve already indicated a legislative change we will make to expand the three month period for which people can’t be evicted for rent arrears to six months.

“We will continue to look at how we give people additional security over and above that.”

Government backtracks on pledge to ban evictions

Published On: March 24, 2020 at 11:57 am

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In response to the crisis caused by the coronavirus, the Government announced that it would introduce a ‘complete ban on evictions and additional protections for renters‘ who have been affected. However, the released Coronavirus Bill only states that the notice period will be increased from two months to three.

Commenting, Caitlin Wilkinson, Policy Manager at Generation Rent, said: “This legislation fails to deliver on these promises in every respect. All these measures do is extend the notice period for evictions to three months, which will provide little comfort to those faced with losing their homes in the midst of a pandemic.

“Equally worrying is the lack of provision made for rent arrears, which will stack up in the three month period. Many renters will end up with thousands of pounds worth of debt and no means of paying it off.

“Landlords and tenants are expected to ‘work together’ to find a solution to suit both parties from June onwards – but there’s absolutely nothing to stop landlords from evicting tenants if they can’t pay. Eviction is the leading cause of homelessness, so the Government must act now to avoid another crisis in three months’ time.”

Crisis Launches Drive to Help People Experiencing Homelessness During Coronavirus Pandemic

Published On: March 24, 2020 at 11:02 am

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Crisis Launches Drive to Help People Experiencing Homelessness During Coronavirus Pandemic

On Saturday 21st March, national homelessness charity, Crisis launched In This Together, a campaign to raise funds for people who are homeless and the local charities that support them who are struggling more than ever in the Coronavirus outbreak.

It doesn’t take a genius to work out that rough sleepers are particularly vulnerable to coronavirus. They are in fact three times more likely to experience a chronic health condition as a direct result of being homeless. They are also not in a position to follow government guidelines on regularly washing hands and self-isolating. 

Crisis has quickly reacted to the fast-changing situation that the country now finds itself in with their In This Together campaign. They are providing phones loaded with credit to homeless people so that they can continue to receive support  and advice and their staff have been delivering care packages filled with food, hand sanitiser and hard copies of the latest government advice to people sleeping on the streets and in temporary accommodation. 

They have also set up a series of emergency grants to help fellow local homeless charities in their continuing efforts to deliver night shelters and other vital services.

In addition they are also lobbying the government to take emergency measures to protect homeless people. On the 17th March, Crisis and other homeless charities, St Mungo’s, Centrepoint, Homeless Link and Shelter Cymru wrote to Prime Minister Boris Johnson, First Minister Nicola Sturgeon and First Minister Mark Drakeford calling for a detailed plan on how to ensure people experiencing homelessness can access self-contained accommodation and safely self-isolate.  

Jon Sparkes, Chief Executive of Crisis, said: “The generosity and resolve of the British public at this time is inspiring. So many people have been in touch to say that they are especially worried about the impact of coronavirus on people who are homeless – and are asking what they can do to help. 

“In recent days we’ve had to postpone a number of fundraising events and temporarily close our shops. Now more than ever we value donations to keep our frontline services running, and to support smaller, local homelessness charities with their emergency response in these unprecedented circumstances. We know that with the public’s support we can protect people facing homelessness from the worst effects of this outbreak.” 

Universal Credit and Housing Benefit support announced for renters

Published On: March 24, 2020 at 9:31 am

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Universal Credit and Housing Benefit support

The Government has made the decision to ensure the Local Housing Allowance is guaranteed to cover at least 30% of market rents in a claimant’s area. This has been recognised as a vital measure to support tenants and landlords. 

Combined with grants to cover up to 80% of wages, this package will go a long way to sustain tenancies.

In a joint statement, the Residential Landlords Association (RLA) and the National Landlords Association (NLA) have said: “We warmly welcome today’s announcement by the Chancellor. It will give tenants and landlords much greater confidence that rents can be paid through the ongoing crisis which is clearly preferable to deferring rents through rent payment holidays.

“We will continue to work constructively with the Government to ensure everything possible is done to support tenants and landlords through these difficult times.”

Jon Sparkes, Chief Executive of homelessness charity Crisis, said: “We warmly welcome the steps Government are taking to create a proper safety net through the welfare system that protects families from losing their homes.

“The move to increase housing benefit so that it covers the bottom third of rents will ensure that people are not pushed into homelessness during this outbreak. The need for this cannot be understated – families must have the security of a safe, permanent home.

Dan Wilson Craw, Director of Generation Rent, comments: “The Government’s package of support for business should hopefully result in fewer redundancies. But many renters have told us they have already been laid off and will struggle to pay next month’s rent.

“Combined with the pledge to suspend evictions, raising LHA to cover the bottom 30% of homes will make a difference to many who are losing income.

“But the five-week wait to claim Universal Credit will push people into arrears, and the increased housing element is not enough to overcome the shortfalls those who are paying higher rents will face. 

“To assure renters who won’t benefit from the job retention scheme, the government must make Universal Credit available at the point of need, raise LHA to at least the average rent, and stop landlords raising rents during the crisis.”

Mortgage Payment Holiday Will Also Apply to Limited Companies

Published On: March 23, 2020 at 10:51 am

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Mortgage Payment Holiday Will Also Apply to Limited Companies

Landlords who have applied for buy-to-let (BTL) products through limited companies will also be eligible for the three month mortgage holiday announced by the Chancellor last week.

Chancellor of The Exchequer, Rishi Sunak announced last week that people struggling with their finances due to Coronavirus would be able to take a three month mortgage ‘holiday’ which will allow them to start paying again at a later date.

His decision has been hailed as good news for borrowers in financial difficulties. Landlords whose tenants are struggling to pay the rent will be able to defer their mortgage payments, including those landlords that chose to set up as limited companies, rather than sole traders, according to UK Finance. 

In addition to this, both UK Finance and the Building Societies Association have made it clear that all repossession and eviction processes will be put on hold for the next 90 days, meaning that both tenants struggling to pay the rent, and homeowners struggling to pay the mortgage will be able to avoid homelessness for the near future.