Government have created chaos in the PRS

Reply to the comment left by Gromit at 01/04/2020 - 14:54
It might be a majority Conservative PARLIAMENT, not so sure about the government.

Reply to the comment left by Gromit at 01/04/2020 - 14:54Can a professional or part-time landlord claim up to 80% on the loss of earnings based on the average of three years tax returns?
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Well written article, some common sense at last!

I read some time ago a comment by a leading American investor that when the regulation in a certain sector becomes too onerous and the barometer of rights moves too far, it's time to exit that sector. This wasn't particularly aimed at the PRS, but I think we are now at/ approaching that point.

I also agree with previous posters that this will be the final nail for a lot of landlords and a sell off will happen when the market returns, I will certainly be looking at it

The government want us to run as a professional business, be regulated as such, but then not tax us as a business and treat us as a business.

It's the same as asking Tesco to subsidise the weekly shop for three months, no difference!

Reply to the comment left by nickh215 at 02/04/2020 - 10:53
Sorry Nick, I don't believe landlords do qualify for the self-employed grant. The advice I have seen says that we are classified as 'investors' so don't count. Ironically, we are neither employed nor self employed.
Just disadvantaged and taking the squeeze from all directions.
Would love to hear if anyone knows different...

Reply to the comment left by David Lawrenson at 02/04/2020 - 10:04
..avoiding the Plod,,,and the already too eager and increasing cohort of Stasiesque curtain twitchers.

We have a number of tenants calling, mostly confused at to what their options are! We have been working with the self employed and asking them to pay at lest 50% of the rent so that at the end of this the payment plans will not be impossible, has anyone got a suggested template to use which summarises the government position that tenants should still pay their rent?

It would be great if we could engage the newly formed NRLA in speaking with government to rectify the immense pressure that they have put landlords under during the Covid-19 lockdown.
Organise are a petition group who circulate petitions widely on various issues and they have been somewhat successful in getting help for the self employed during this crisis.
As Dr Beck mentions, they have to date offered absolutely no support to landlords during this period and have actually made things worse by the following:
1. Preventing landlords from evicting tenants who are not paying rent or for any other reason
2. Offering no rental cover during the period
3. Stopping any viewings for empty properties

I suggest the following would help:
1. Clear illustrations of the range of landlords who are being affected - it is not only super wealthy as they seem to assume - it is landlords with small portfolios / people who rely on the income for their pensions etc

2. Allow rent to be included in self employed income - especially if total income is under the £50K threshold

3. Suspend council tax payments for 12 months for landlords with empty properties (the limit of 12 months would help get through the crisis but would still exclude the wealthy who buy properties and leave them permanently empty)

4. Pay the rent due direct to the landlord if a tenant is unable to pay due to unemployment / illness

The government must realise that many ordinary people are landlords and will lose their livelihoods if nothing is done. This will mean those landlords will end up in financial hardship or worse get the properties repossessed and end up in the benefits system in the long term which will mean tenant evictions and a larger benefit bill.

Any suggestions as to how best to campaign?

Can we look into the bigger picture as no doubt there are many sections of society that will be hard done by. I have just signed a petition at http://chng.it/CtDKWGxvyb for one such section. There are many tenants who fall between the gaps and are not able to make payments of whom two (so far) I am in the process of helping work out a payment plan which will leave them in debt.
I have no doubt there are some very happy with their 80% payouts which really does look like a holiday for them whilst others can't get a penny. I think the government has shot its load of money without considering the full picture. (Christ knows where this money is coming from considering all the things we could not afford prior to this epidemic) I accept these are times when we need quick responses but how about paying 80% of people's rent instead, and the mortgage companies put a hold on interest payments for everyone for 3 months. At least everybody will have a roof over their heads then can adjust their food bills heating etc responsibly .
I realise that this is in effect passing the buck up the line to the banks however they are in the best position to lobby the government for restitution being no stranger to government bailouts!

Maybe we should all be writing to Robert Jenrick MP, Secretary of State at the Ministry of Housing, Communities and Local Government (MHCLG)! State our case and involve the press etc.

Not to mention the fact that incorporated landlords are considered investment companies and not trading companies and are not therefore eligible for the business interruption loans being given to tide over other businesses.