No Respite for Landlords

No Respite for Landlords

13:56 PM, 25th January 2021, About 6 months ago 43

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The Debt Respite Scheme (Breathing Space) guidance was a shock to landlords when we heard about it this week. It is a truly atrocious bit of legislation, heaping even more worry and misery on landlords and also likely to have a very damaging effect on the prospects of any potential tenants looking for private accommodation who have any experience of mental health problems.

I have laid this out in an article this week, which I hope to get to the attention of the powers that be.  Hard cases make bad law: landlords, debt and mental health | TheArticle

The most egregious parts of the rules are the lack of any clear definition as to what constitutes a ‘serious’ mental illness and secondly the idea that someone facing a mental health crisis would be able to live rent-free until the crisis was over – however long this takes.

I have also laid out what this would mean for a landlord surviving on the state pension and the rent from one property. They could go from living on an income of £850pm to having to manage on £50. Of course, as we learned with the effects of Section 24, there will also be cases where they have to live on less than zero.

The worry for landlords unlucky enough to suddenly find their tenant is officially granted the ‘breathing space’ is going to be immense. It is of course already a common experience for landlords to suffer ill health because of their tenants.

Landlord, Bansi Soni, who was on dialysis and couldn’t sleep with worrying about her non-paying tenant said: ‘she’s still occupying my flat and currently owes me 11 months’ rent at £13,750.  The stress aggravated my physical condition which worsened the life-threatening infection I had and meant I had to be hospitalised.’

This was before this latest outrage.

Where is the consideration for or even acknowledgement of the financial and psychological strain that the Government is heaping on landlords?

What about landlords’ mental health? What kind of breathing space are we going to get? I think we all know the answer to that.


by Mark

18:38 PM, 25th January 2021, About 6 months ago

Reply to the comment left by Mick Roberts at 25/01/2021 - 14:53
Mick can you send me a copy. I want to write to my MP about the Marxist policies of Robert Jenrick.

by Chris @ Possession Friend

18:38 PM, 25th January 2021, About 6 months ago

Reply to the comment left by Katy Ann at 25/01/2021 - 18:15Katy, I suggest you read the full legislation.
There are Two types of moratorium, an ordinary debt moratorium, the only relevant criteria being that it must be an eligible debt - which all rent will be unless the tenancy agreement was obtained by fraud.
The other type of breathing space - moratorium, is more frighteningly not a 2 month one for 'just' debt, but where the debtor is receiving mental health. This is Unlimited, ( until the debtor ceases having mental care ! )
Of course a Creditor can appeal for a review of a moratorium. The debt advisor must carry out that review within 35 days, leaving only 25 days of the moratorium remaining.
What do you think are the chances of getting a court hearing in 25 days ?

by Steve Masters

18:41 PM, 25th January 2021, About 6 months ago

5. European Convention on Human Rights
5.1 The Economic Secretary to the Treasury has made the following statement regarding Human Rights:
“In my view the provisions of The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 are compatible with the Convention rights.”

The draft bill might be compatible with the debtors human rights but what about creditors Human Rights?!

Seriously, what about the CREDITORS HUMAN RIGHTS?

by Chris @ Possession Friend

18:44 PM, 25th January 2021, About 6 months ago

Reply to the comment left by Dylan Morris at 25/01/2021 - 17:36
Dylan, it will be the new 'ADHT'
When recipients of benefit got wind that if you told your Doctor your child was naughty, they'd be diagnosed ADHT and attract additional benefit.
9.4% of children are apparently suffering. a decade ago, almost nobody had heard of it. ( Of course there are some genuine cases, mainly confined to those on benefit who've got nothing to gain by 'gaming 'the system'
Wait till the '2 month freebie' gets round the UC office.

by Chris @ Possession Friend

18:50 PM, 25th January 2021, About 6 months ago

Reply to the comment left by Steve Masters at 25/01/2021 - 18:41
Never before, has one political party imposed so many of the others policies.
This government is stealing labour policies and its voters.
Party of business ! my @

by TrevL

19:47 PM, 25th January 2021, About 6 months ago

Crickey, a little heated on here!

The government are clearly trying to cap/reduce public housing costs wherever they can. They don't have a choice, government spending is spiralling upwards, and tax take has reduced. If they don't control costs, both public & private interest rates will rise. This means keeping the poor and mentally ill in their accommodation to avoid even greater public costs.

These type of policies are here to stay, for a couple of years possibly (even if legally challenged), we're in the middle of a pandemic. If your portfolio/finances can't sustain that, sell out, the markets boyant! Otherwise buckle up, it's gonna be a difficult ride.

by Paul Cunningham

20:12 PM, 25th January 2021, About 6 months ago

I know I'm starting to sound like an old record but, what is the point of the NRLA? Time and time again landlords have been hammered , and because we have no voice and no representation we will continue to be ignored. The NRLA claims 85k members....apart from flogging courses and mortgages what do they actually do? I fear this will get worse whilst there is no opposition.
Maybe a change of Chair, CEO and Board is required.
We need an Association with balls and a voice.

by paul robinson

20:19 PM, 25th January 2021, About 6 months ago

Reply to the comment left by Paul Cunningham at 25/01/2021 - 20:12
The CEO is defo a landlord too.

I do agree tho the only stuff I usually see is trying to flog courses that I don’t need

by Chris @ Possession Friend

21:25 PM, 25th January 2021, About 6 months ago

Reply to the comment left by Paul Cunningham at 25/01/2021 - 20:12
NRLA are like some other people, a bit nonchalant and myopic ( as usual )

by Mick Roberts

10:12 AM, 26th January 2021, About 6 months ago

Reply to the comment left by Chris @ Possession Friend at 25/01/2021 - 18:38
Eh Chris,
As if some of us han't got enough to do without then going to court for another made up thing. Where are ever supposed to find the hours & the money for this.....

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