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

Uxucvhrtau

16:49 PM, 7th March 2020, About 2 years ago

Please can nobody engage in any further communication to do with this chat as it doesn’t warrant any response in any capacity nor does it require any attention as the more attention people are giving it the more exposure it is getting and therefore could possibly get its foot in the door.

It is obviously completely preposterous and ludicrous not to mention clearly discriminative and unfair on every count as no landlord is alleviated from needing to pay their mortgage for any amount of time if they become ill.

Dennis Leverett

17:20 PM, 7th March 2020, About 2 years ago

Reply to the comment left by Uxucvhrtau at 07/03/2020 - 16:49
You are right I guess.

Mike

19:32 PM, 7th March 2020, About 2 years ago

Sorry Uxucvhrtau, I appreciate this idiot should not be given a platform to spite his rubbish, but I am compelled to say If any of my tenants get Coronavirus, I m going to wear protective suit and face masks and drop them to his house, job done. Let the ba##### keep them for free. Also if he can feed them and wash their clothes and nurse them, I am a landlord, I run a strict business, this thick head blogger can put his money where his mouth is. Indeed he can stuff any money he has in his big mouth perforate the notes with tiny holes with a pin and breath through it to keep Corona virus away, be cheaper to do this with a fiver than to go and buy a face mask for a tenner.😁

Dennis Leverett

9:28 AM, 9th March 2020, About 2 years ago

Reply to the comment left by Ian Narbeth at 06/03/2020 - 17:09I Ian, I said to you don't waste your time but I got hooked on his rubbish and decided to play him by studying his ridiculous replies to those who don't agree with him, he is so predictable. I set him up and caused him to contradict himself on more than one occasion. When I posted his contradictions not one was put on the blog. The funniest one was where I explained how the "experts" that developed Corbyns manifesto got it totally wrong, explaining that Marxist ideas will never work and the people obviously didn't want them, even his own members. Later on he came back to say that Corbyn had stolen his economic ideas for his party. So when I said are you saying that really you are responsible for the incredible failure of Corbyns election campaign I got no answer except for him saying I called him a Marxist. He is very selective in his postings and when I gave facts as why some landlords would crumble with rent not being paid, ie negative equity in poor areas, unable to sell etc. that was not posted. In reality there was actually very little support for him on there, mostly the two same people one of whom said he would miss my comments.

Ian Narbeth View Profile

11:03 AM, 9th March 2020, About 2 years ago

Reply to the comment left by Mick Roberts at 07/03/2020 - 13:05Mick
People need to read the whole of Murphy's blog
He writes:
"Secondly, I suggest that the costs of this crisis fall upon the finance sector. This is because, as I have also noted in my previous post, I think that anyone who has a mortgage or loan (including a lease) that they cannot afford to meet during the course of the epidemic period should be granted an automatic three-month extension to their loan period, which period might again be extended if the epidemic lasts longer than is expected. Once more I suggest that there should be no need to apply for this extension: simple default should be enough to trigger it. I am not in this case suggesting that the interest owing not be due though: it could be settled at the end of the loan. What I am saying is that cash flow must be eased."
He also seems to think that landlords and lenders should without legislation simply roll over and allow the rent free in the case of landlords and the 3 month extension plus payment holiday for lenders. As if that is going to happen, except in Cloud Cuckoo Land?
Murphy's proposal on its face would not immediately penalise landlords. However, he refuses to engage with my argument about moral hazard. If the only criterion for getting the rent-free period or the loan extension is to default, then almost every tenant and almost every landlord will default. That will totally screw the lenders who in turn will not be able to pay their depositors/own lenders. That may crash the banking system.
Murphy's scheme is hare-brained (and he got very upset when I called it that) but let us criticise it for the right reasons.

Mick Roberts

15:31 PM, 9th March 2020, About 2 years ago

Reply to the comment left by Ian Narbeth at 09/03/2020 - 11:03
Thanks for pasting some info Ian.
He's a shocker isn't he.

Marie

8:33 AM, 13th March 2020, About 2 years ago

Reply to the comment left by Kathy Evans at 06/03/2020 - 16:40
Yes what I heard as well. China is using intravenous Vitamin C and it works. However pharma in the western countries is never going to support that as they make no money out of that.

Rob Thomas

16:01 PM, 16th March 2020, About 2 years ago

Why should landlords pick up all the cost? It would set a very bad precedent. Surely better for the government to provide assistance.

Rennie

16:52 PM, 16th March 2020, About 2 years ago

Reply to the comment left by Marie at 13/03/2020 - 08:33
Yes folks, get loads of vitamin C down you -NOW!

Paul Shears

16:59 PM, 16th March 2020, About 2 years ago

Reply to the comment left by Rennie at 16/03/2020 - 16:52
I can't. I've spent all my money on toilet rolls.
I will be opening a bidding war on Ebay in a month.

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