Government have created chaos in the PRS

Government have created chaos in the PRS

13:18 PM, 1st April 2020, About 5 years ago 117

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Private landlords in the UK have been left in dire straits not only by the coronavirus, but by the Government’s abysmal response to it. Whilst the Government has mentioned in its legislation that tenants must keep paying their rent, in its public pronouncements it has given a very different message – talking about landlords being able to get ‘mortgage holidays’ and stating landlords are expected to pass this on to tenants.

This has confused many landlords and tenants with the latter now believing they may have to pay no rent for 3 months, as they think landlords are somehow being ‘let off’ having to pay.  This is a duplicitous and damaging message.

I am urgently trying to get the Government to realise that this is not on and that they are creating chaos in the sector. With their embargo on all evictions for at least 3 months – and we just know this will be extended – landlords are faced with non-paying tenants (egged on by Government) and with continuing to house rogue tenants with all the associated financial and emotional costs. The latter’s behavior has, in many cases, had nothing to do with the coronavirus – with many claims pre-dating the pandemic by months, but the bad tenants are using this to take even more advantage and stay put, whilst not paying.

I have outlined this in more detail and suggested some positive steps the Government can take here. https://capx.co/landlords-are-taking-a-pummelling-from-the-coronavirus/

I encourage landlords to read the article and then to come back here to put comments below this Property118 article, giving your side of how things are going. We can then share this with journalists and give the national press an insight into what is going on, because as far as I can see it is a real pig’s ear and is going to create much misery and inevitably a spike in homelessness when landlords can eventually regain possession of their property.


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Ginster

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12:41 PM, 2nd April 2020, About 5 years ago

It's a complete nightmare, I've just come back to the UK after being overseas with my job for a long time. Since September my tenant has been late paying rent just about every month. At the beginning of March she replied to the rental agent asking where the rent was by just saying "I've been very stressed, my Grans unwell, ive only made £200 this month, and this is giving me more anxiety, so I can't pay rent this month, tell the landlord to evict me, there's nothing else I can do" she has been nothing but trouble and I went to see her last year to see the house and we had a great chat and she was very apologetic. 5 days after this text, the Govt decided to suspend Evictions meaning I couldn't serve her a section 21.
She now won't respond to any communication from my rental agent, I've emailed her and said 'we need to come up with a payment plan- I'm here to help, but please understand this isn't a holiday from paying rent" again no reply.
I don't know what to do. I can't go around there to speak to her, she is living rent free in my house that I rely on the rental to rent my own property. I'm sending her a weekly email to her contact me with a payment plan.. still nothing.. any ideas anyone?

Adrian Alderton

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12:43 PM, 2nd April 2020, About 5 years ago

Good points raised.
My family and I are reliant on rent income as our main source. We are not rich, most of our tenants drive much better cars than we can afford. Offering a holiday is just tenants taking a loan of landlords which they will find difficult to repay in the future. Mortgage holidays dont meet this loss of income and will end up costing us more and impacting on credit records (which are critical to us remortgaging etc).

I have had more expenditure on property than normal this year so cannot afford loss of rent. Also more voids than normal with one stuck in refurbishment (suppliers closed), one ready to let and another just abandoned by a tenant of 5 years! Also we are banned from letting our holiday let and get no compensation (has to be significant proportion of earnings). There is a limit to how much you can help your tenants based on your financial reserves.

I have never evicted a tenant in 12 years as always managed to resolve issues when they got into difficulties but have one who has been in arrears for over 2 years. On the very day the court order for possession expired the Gov't announced their 'no evictions' mandate. He is now happy as larry in the house not paying any rent and even sniping me with texts.

We are not classed as self-employed and do not qualify for any assistance. We need the Gov't to be making it clear that tenants still need to pay rent, give a S24 'holiday' or preferably repeal it and require mortgage companies to give holidays with no impact on credit history.

We want everyone to get through this safely however the Govt appears to have no idea of the impact on many landlords.

George T

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12:49 PM, 2nd April 2020, About 5 years ago

My full support for all the above especially the various certificates required.
Doesn't this situation underscore the need the for a national tenants blacklist so that all the tenants that con their way out of paying the rent can be stopped from repeating the exercise again ?

Chris @ Possession Friend

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12:49 PM, 2nd April 2020, About 5 years ago

Reply to the comment left by Carol at 02/04/2020 - 12:36
L.A's should be told by Govt ( although shouldn't Need telling ! ) to suspend Licensing schemes. Govt are considering suspending lots of payments, why not the 'Landlord Lottery' govt enfranshised LA to collect.
Also, should suspend Electrical certs. - How any Electricians are going out into homes to do ( Non-essential ) Electricity testing for a certificate !
( and Yes, N+RLA supported Govt on that too ! )

Chris @ Possession Friend

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12:51 PM, 2nd April 2020, About 5 years ago

Reply to the comment left by George T at 02/04/2020 - 12:49
George, the Only enforcement is against landlords, Government don't have a care in the world for how tenants behave.

Rod

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13:03 PM, 2nd April 2020, About 5 years ago

I've said it many times before. Email the 'top brass' not your local MP. In theory MPs only take correspondence from own constituents but in practice many messages get there as I've had the odd reply! H.B. Is paid to claimants as it gives the government a quiet life! I feel if L.Ls are eventually classed as self employed and entitled to 80% grant, the 3 month grace will suddenly vanish! So, get some 'hot' e-mails sent, they'll soon get fed up. Remember - 'Power to the People' I can see it coming back!!

Dr Rosalind Beck

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13:11 PM, 2nd April 2020, About 5 years ago

Reply to the comment left by Lesley Lester at 02/04/2020 - 10:10
Thanks, Lesley, yes it would be much appreciated if everyone could send the link to the article to their MP. Should only take a minute or two and it would get the message across.

David Lester

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13:48 PM, 2nd April 2020, About 5 years ago

Reply to the comment left by Dr Rosalind Beck at 02/04/2020 - 13:11
Email has now been sent.

Chris @ Possession Friend

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14:06 PM, 2nd April 2020, About 5 years ago

Reply to the comment left by Ginster at 02/04/2020 - 12:41I would await the end of the current version of Lockdown, where I anticipate movement will be revised ( not fully restored ) and whilst keeping Social Distancing, speak with her.
My company has a number of clients in your position and an increasing number have sought to use my negotiation strategy. [ Some asking me to undertake this in person ] This is nowhere near as effective as the Courts Possession process ( for the level of effectiveness that was - sic ) but its pretty much one of a very few options left open to Landlords.

Mick Roberts

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14:20 PM, 2nd April 2020, About 5 years ago

As usual,

The Govt, Labour, Shelter, Councils, Licensing, UC, all make it worse for tenants. Initially worse for Landlords, but end loser is tenant.
Their policies are shocking in How can we screw this Landlord over. When they should be thinking How can we help this Landlord keep this tenant in this house at not too shocking a rent.

People feel free to duplicate the below outgoings we did not have when we took the tenant on years ago.
Granted, EICR is good idea. But if Govt want us to supply new build house specifications, they cost more money, no longer can we do the cheap rents that some of us have been doing.

Below is the extra costs which the Govt & Councils has forced upon us, which I've now had to pay since u moved into your home. How some of u think this can be paid with no rent in is baffling.

We now have to do Fitness tests on new rentals £150 each house.
Electrical Installation Condition reports organisation & implementation £300+ each house.
Selective Licensing £890 just for one house.
Legionnaires checks £70 each house.
EPC’s £80 each house.
Data protection checks £40.
Carbon Monoxide detectors & smoke detectors, when wired, £300 each house.
Getting registered with Information Commission officer £40.
Floorplans, Inventories £90 each house.
Landlord has to criminal check himself & has to prove he has Right to live in UK
Increased staffing admin behind the scenes.
As you’ve seen, checks/inspections on your houses now with smoke alarms-Should be much more detailed checks.
Consultant & Legal fees to keep pace with legislation & staff training.
Letting Agent costs for new tenancies & house swaps £70pm each house.
All the above is extra costs we din’t have when many of u moved in.

Landlords are selling in their hundreds due to the increase in costs & the burden of ever increasing legislation.
Landlords are being fined when they get something slightly wrong

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