Government have created chaos in the PRS

I saw Starmer on the TV today surrounded by a very close crowd of NHS supporters. All looking pleased with themselves and oblivious of the irony of their close proximity........

This is a link for the Martin Lewis Money Saving expert website who have produced a survey in which they are looking for information on the "forgotten sector" of the Governments financial help and support for persons/business due to the Coronavirus pandemic. https://docs.google.com/forms/d/e/1FAIpQLSfNTX1e6FUJNbAO1wlsLs0FSBmSaqVCpgCRIeAX9wBARINBRg/viewform
I think it's an avenue worth pursuing, I have emailed it to the NRLA to ask if they would email the link to all of its landlord members.
Below is my comment in the survey.
We are the forgotten sector: The Landlords Coronavirus cash flow problem.
Residential Landlords urgently need financial assistance from the Government to support them because tenants are not paying their rent due to their finances being affected by the Coronavirus.

A hugely increasing number of tenants are not paying their rent and this is causing financial hardship to landlords many of whom rely on the rental income for their personal income. The landlord has in effect, now become an unauthorized Bank lender to their tenants, when the tenants do not pay we are not allowed to evict them for the next 3 months (which will probably be extended) and we are expected to work with them on a payment plan.

The maximum interest we can charge is 3% over base. This is going to be a HUGE PROBLEM up and down the country, once the tenant gets into debt it will take them many years to get out of debt to the landlord but in the meantime how does the landlord LIVE??

Tenants are mistakenly thinking that as the Landlord can apply for a 3 month mortgage holiday, that this is FREE MONEY! They don't realize that we have to pay it back with interest and so they are thinking "Well I can have a rent payment holiday"
The landlord’s cash flow is being strangled because tenants cannot afford to pay or simply choose not to pay. Where is the financial support for landlords?

I totally agree with Moody Molls and Jim S. there is little I can add except a bit of irony. I have a 4 bedroom house opposite a major hospital. It requires carpets and interior doors/wardrobes. I cannot complete it to either let it nor sell it. I was going to let it but the latest fiasco regarding non evictions and all this holiday rubbish has already been abused by 3 sets of tenants. I have reduced my lets from 15 to 8 in the last 2 years. Sold 4. Have offers on 3 which I am paying CTAX on rather than re let them. The lock down has slowed these sales even though they are empty - I am not expecting to complete within 3 -6 months if at all. I am of course paying on the one next to the hospital - i'd happily let it cheaper than normal or even do a share for local medics ( I have had 17 operations and total respect for our NHS so I owe them big time) but of course I cannot due to legislation. How did I this come about this empty property? I 'evicted' (it was amicable and talked through) tenants of 19 years (the best tenants I have ever had) s to carry out repairs to meet new legislation (electrics) and to replace the heating system (warm air - parts and a gas safe air heating engineer being like hens teeth). The tenant was an electrician in another country and had no issues with a fuse board. LOL. Its now had d/g, kitchen, bathroom, utility room and redecorated throughout. All done to meet all the new regulations (as I said maybe not to initially rent out but if I did not then making it easier to sell. But I am stuck with it now until this lock down ends. With other tenants not paying this is going to hurt me financially but there is no common sense. As already said - given the government stance on no eviction etc and on top of the last 4 years of continual legislation and media witch hunt I'll sell it now. As the others come empty (or I can secure an eviction - I'll be starting with the 'instant' jump on the band wagon non payers) I'll sell them all. Enough is enough.

How did you contact the nurses? I have made no real progress through the NHS at all. Indeed I have a private “nurse” who has given notice but has, as yet, nowhere to go.

Sent to my MP today

Dear Catherine,

I am writing to you as a local landlord with a small portfolio currently holding around 30 tenants.

I have been in the business for over 30 years and in spite of all the recent taxation and licensing and regulations that have been imposed on private landlords, I am one of the luckier ones and not yet had to sell up removing tenants from happy homes. Whether or not I survive the impact of the Corona Virus is another matter.

Of my current tenants one third have now been in contact with serious concerns over their imminent ability to pay their rent and three who have already defaulted on their April rent due. They are all without exception the self employed.

This is very distressing for both tenant and landlord and I am doing my absolute best to understand the situation as it is evolving as well as be professional and supportive to my tenants in this time of crisis.

Due to the complicated nature and delay of the government assistance packages quite understandably every tenant that has already defaulted is scrambling to apply to Universal Credit and it appears not fully exploring their other options. No one knows initially how much assistance each option will provide but the furlough system is in the hands of the employers, the SEISS applicants must wait to be invited to apply, so in effect Universal Credit is the only action they can take at the moment with the hopes of starting the journey towards actually receiving funds.

I am left in a position where I am having to avail myself of all my tenants options as well as my own in order to assist them in exploring all avenues in order to deal with their arrears. I find myself trying to understand whether it is legal and correct for a tenant to apply to both Universal Credit and SEISS at the same time? And whether it is legal and correct for a tenant to apply for Universal Credit at the same time as speak to an employer who has let her go regarding the furlough option? And trying to understand if a company (for example a restaurant chain) has any obligation to use the furlough system or engage in discussing the possibility with my tenant? So I am not only trying to understand the Tenants position and Landlords position and the mortgage lender position but companies as well!

The government’s assistance packages are leaving Landlords not only potentially carrying the financial burden in the long term but actually having to “nursemaid” tenants through the crisis. With all due respect this is completely wrong.

I will also be applying to my mortgage lender for a deferment. The government and press describing such deferments as “Holidays” was totally irresponsible and created a lot of texts from tenants asking for rent to be “waived”. When I apply for a deferment my mortgage will inevitably ultimately cost me more and last longer. Whilst with payment plans I am giving my tenants an unsecured 0% interest free loan.

I do not want my tenants to come out of this carrying significant debt. This is not an acceptable solution. Nor can I shoulder all the burden or indeed lose my business.

We really need at least 80% of rent (of those tenants struggling) to be paid from government direct to landlords to avoid this mess. Because of the embargo on eviction and the fact that government financial assistance is going direct to the tenant what I am experiencing is that tenants are saying that they will give me whatever they can after they have paid all other essentials leaving themselves in arrears or me having to write off anything remaining.

Tenants are being given the picture that rent is the last thing on their list instead of the first. Some tenants are not bothering to apply for government assistance and simply asking for rent to be waived.

Many tenants I know will endeavour to pay as much as possible but the way things are currently set up it is leaving the situation open to vast exploitation of landlords by unscrupulous or opportunistic tenants at a time when landlords are least able to absorb the impact.

I understand that one way or another we are all going to shoulder the financial burden of the Corona Virus outbreak however after so much recent tax increases there is no doubt that many private landlords may never recover.  The private rental sector will shrink and there will be significantly less accommodation available where it is most needed.

Thank you for your time and I hope you can successfully put my concerns to the government and that more clear and straightforward assistance is delivered.

Yours sincerely,
Joss Urch

Reply to the comment left by Alistair Cooper at 03/04/2020 - 09:29
Sorry, Alistair - only just seen your response. You might find this post by Bill Irvine and my response to it helpful https://www.propertytribes.com/are-landlords-entitled-to-claim-lhauc-t-127646211-lastpost-user-438521.html

Reply to the comment left by Mandy Thomson at 06/04/2020 - 18:52
Also, to add to Mandy's point, you have to be a client of Bill's to get his advice. ( as I understand ) but the government has advised that tenants should be contacting either Shelter or Citizens Advice for questions on benefit or payments available during Coronavirus.
Unfortunately ( and perhaps not surprisingly, ) Government had made no provision for landlords asking similar questions.

I'm wondering how many landlords affected, perhaps a class action against the government for creating the situation and denying us our legal recourse to take action against tenants who will use this situation to have free accommodation at our expense

Reply to the comment left by SteveH at 06/04/2020 - 22:40
I've thought of the prospect of this Steve, my thinking was that it might be a Judicial Review. ?
I think the opinion of Mark Smith QC would be beneficial ?

Basically the governments should focus on tackling the corona virus, instead of focusing on time and energy extending 3 'further' months to allow tenants to live for free effectively.

As it stands, it takes a Scottish landlord 6 months if all goes smoothly to evict a tenant already. With the 3 further months added on, it will be 9 months.

This is just plain wrong and open by massive abuse from tenants.

If the government wants private housing services to house those non paying tenants and take away the ability to ask them to leave, then the government should pay for the rent for those families they are endorsing to live rent free.

All we are saying is pay for the housing services as the government would pay the private hospital for their services when in need.

Private housing providers are offering an essential housing service, why is the government not paying for this and expect it to be free?