Blogger says tenants with Coronavirus should get 3 months rent free!

Blogger says tenants with Coronavirus should get 3 months rent free!

9:26 AM, 5th March 2020, About 2 years ago 74

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Richard Murphy of Tax Research LLP, a Professor of Practice in International Political Economy at City, University of London and regular columnist for AccountingWEB.co.uk, claims Landlords should bear the cost of Coronavirus and provide three months free rent to tenants who contract Covid-19.

Murphy claims: “As a matter of statutory right any tenant should be provided with a minimum three-month rent-free period to ease the stress upon them whilst this crisis last. I would suggest that the grant of that extension should be automatic to anyone who does not make a due payment of rent on the required date during the period of the epidemic. They should be automatically granted this extension by the landlord without having to make any further application or to complete any additional paperwork.”

“I stress that the cost of this will fall directly upon the landlords in question. I am quite deliberately suggesting that they should bear the heaviest burden of dealing with the epidemic. The reason is simple and is that whatever happens they will still have an asset at the end of this period, and no other sector can guarantee that at present. As a consequence they have the greatest capacity to bear this cost. And, if it so happens that some landlords do fail as a consequence, the assets that they have owned will still exist after this failure and so the economy can manage the consequences of this.”

Murphy goes on to suggest that the other group that should carry the burden of Coronavirus is the finance sector, but only by offering a three month extension to loan or mortgage payments and not the total loss he seems to wish upon Landlords.



Comments

Ian Narbeth View Profile

16:51 PM, 6th March 2020, About 2 years ago

Murphy's plan would turn a drama into a crisis. It would be in every tenant's interest to default as it costs the tenant nothing. Even if, as Murphy proposes if you read his blog, banks are required to allow a payment holiday to any landlord who defaults and extend the loan term by three months what will that do to the banking system? Banks will not be able to meet their payment obligations to other banks and to depositors. This is a classic case of moral hazard and he refuses to engage with my argument.

The multi-millionaire banker renting a penthouse in Knightsbridge will get threemonths' rent-free if he defaults on paying the rent? Really?

Dennis Leverett

16:58 PM, 6th March 2020, About 2 years ago

Reply to the comment left by Ian Narbeth at 06/03/2020 - 16:51
Ian, why waste your time and breath on this arrogant person who of course is always correct in what he says. He only puts reply posts on his blog that suit him, mine has not been on there. I think he's losing it and needs to seek help ASAP.

Ian Narbeth View Profile

17:09 PM, 6th March 2020, About 2 years ago

Reply to the comment left by Dennis Leverett at 06/03/2020 - 16:58
I think you are right, Dennis. He has not so far allowed my post explaining why s24 was not about creating a level playing field.

The guy seems to have earned a reputation as some sort of tax expert but as his ideas are the basis for Corbyn's tax plans and the Grauniad sings his praises, I take that with a pinch of salt.

Colin Dartnell

19:47 PM, 6th March 2020, About 2 years ago

You really couldn't make this stuff up. Students rack up huge debts to pay the salary of people like this.

DavyboyHMO

23:05 PM, 6th March 2020, About 2 years ago

If all 4 of my tenants in my HMO have the virus I should give them 3 month's rent free? What on earth have you been smoking? My outgoings on this property with the mortgage is £500pcm? I would not be able to live if this happened...Or do you mean the government pays for the 3 month's rent? In that case.. as long as they pay the rent in full and on time then I have no issues with that.

terry sullivan

8:34 AM, 7th March 2020, About 2 years ago

waw--just shows the state of our educational establishment

its worth reading his wikipedia entry--does not know difference between evasion and avoidance--perhaps he advised gidiot?

Prakash Tanna

9:12 AM, 7th March 2020, About 2 years ago

Is this guy a clown, simply high on drugs, or maybe looking for a free rental for a few months? I also bet if somebody investigated his tax affairs one would find he pays very little and abuses the system. It is beyond ridiculous to suggest Landlords face the burden of the financial fall out of this. Will HMRC offer any tax reliefs or bring back Mortgage Interest Relief, I doubt that. For me, this would be the final nail in an already cheaply purchased DIY coffin online which will fall apart and force me (and other Landlords) to sell up, leave the country (go some place with a low rate of Coronavirus) and never come back. That would leave many many families homeless as a consequence and the LA's to deal with, so good-luck with that!

terry sullivan

11:30 AM, 7th March 2020, About 2 years ago

hes after a job with shelter? or jrf?

Mick Roberts

13:05 PM, 7th March 2020, About 2 years ago

These people are really off Planet Mars.
Hang on, I'll just ring me Mortgage Lender & ask 'em if I can't pay for 3 months. Ooh they said No & they will start to repossess that asset if I don't pay mortgage, which I can't cause no rent coming in. Yes, that asset that wasn't there last year, that asset that no one gave me, that asset that I had to scrimp & save to pay the deposit & work many late nights & Sat & Sun's to get it ready for this tenant that din't want all the hassle & expense I've had & just wanted to move in with minimum fuss & outgoings.
Yes, None of u will have asset, & more homeless out there.
Gees, no wonder Landlords packing up & rents shooting up cause of Mars people like this. Then we have remaining Landlords who will take advantage purely due to Supply demand economics we have. Rent out for as much as u can cause u never know when u might need the money for the next Loony attack.
He admits it may fail, but doesn't mention the consequences of the homeless.

Rennie

13:05 PM, 7th March 2020, About 2 years ago

Reply to the comment left by Kathy Evans at 06/03/2020 - 16:40
China is right! vitamin C will help a lot.

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