Covid-19 will crash my student BTL business?

Boris implied he would include some direction on this later this week. I doubt it will be specific to students though.

We are in the same situation... Our AST is fixed until end of July, but I think we will be forced to at least lower the rent until summer. Any advice / comments gratefully received. Thank you.

I am also have a student portfolio and I rely heavily on foreign students. My concern is that foreign students decide to pospone their UK degree for a year and don't book up for 2020-21.

But, as the OP states, it's worse for Scotland due to the 30 days notice AT ANY TIME rules.

Yes, I'm afraid the numpties, who drafted the Scottish law, did not take this sort of event into account. Those in England with fixed-term contacts will have some leverage. In Scotland, there will be a 5-month void unless there is a need to maintain accommodation for work reasons. Interestingly, some Scottish student unions argued that students ought to have fixed-term contracts.
The universities will have to take care. If students can study and take exams online, what is the point of spending a lot of money on accommodation in order to go to university?

What bothers me more is not the seriousness of the outbreak but the manner in which it is reported, which creates panic. There is no comparison of the numbers with, for example, annual road deaths or annual seasonal flu deaths. And some self-appointed experts, without access to all the information, are given air time to question whether the Government action is correct. True some people need to be pushed to follow instructions for the benefit of all but clearing out supermarket shelves? Do people not know and understand there is a war on?

I think Scotland is a difficult case as a 30 day notice can be given, but I assume that, just as in England, tenancies with more than one tenant are held jointly and severally, so everyone would have to agree to give notice and leave? If not all the tenants do that, the tenancy would continue.

In England (I don’t know about Wales), a student tenancy is joint and several on a fixed term, in my case until mid August. I believe the point about rent reductions and cessation in this Coronavirus world are for those who are suffering financially due to job losses etc. not just as a matter of course (unless, heaven forbid, the government makes that the case).

My current thinking assumes that university grants will still be paid, therefore no financial hardship in most cases, and therefore full rent will continue to be payable, whether the tenants are residing in the property or not – that is their choice as, unless the tenants surrender the tenancy (which must be with my agreement), I cannot relet the property and the tenants remain fully entitled to possession until the end of the term.

Reply to the comment left by Freda Blogs at 18/03/2020 - 12:11
Even in England, joint and several does not require all tenants to agree outside of the fixed term. There is no fixed term in Scotland...

Reply to the comment left by Mike W at 18/03/2020 - 11:57
They're utterly incapable of knowing.
The idiots buying up complete daily stocks of non essentials at 03.00 from Tesco and 08.00 from Waitrose will cause a heavy discount sale of the same products in a few months time.
This must be a complete nightmare for any supplier.

I am a small portfolio Landlord specialising in HMOs for the student rental market in Wales. Can the community comment on the position with existing AST contracts (to end June 20 in my case) and the new ASTs all signed up for the forthcoming academic year(from (01 Sep 20). Many students will have returned home as their University has been closed to lectures and exams are cancelled. I understand that 'Force Majeure' is not applicable to ASTs so is it the case that both Landlord and tenant are in a legally binding (watertight) contract? Oh and all tenancies have Guarantors (usually parents). Students will be continuing to receive their loans (for tuition & accommodation) in most cases and given that the Gov't has underwritten most PAYE &Self Employed folks I cannot see that the vast majority will have much of a case for non-payment (even a compassionate case). Clearly we as responsible Landlords may have to look at each case on its merits. It'll be interesting to see what happens when monthly rents are due on 1st April- I'd be surprised if I didn't get some challenge! Views please, especially on where we stand from a legal perspective?

Jon - like you, this is my business here in Bournemouth. I have a house that has been troublesome all year so far and I'm currently negotiating with them for the balance of the year. This suits me as I want to replace both bathrooms and fully decorate so having early access to the house takes the pressure of me in the summer.

For all inquiries, I'm pointing them in the direction of the Student Loan Company who are paying loans as usual, plus this student focused site that lays out their obligations quite clearly.

https://www.savethestudent.org/save-money/lifestyle/coronavirus-advice-university.html#rent

https://www.gov.uk/government/news/slc-coronavirus-covid-19-update--2

Hope that helps