Government must give clear statement on rental payments

Reply to the comment left by akhan at 11/04/2020 - 21:41
Hi Akhan

Your posts at 20.44 & 21.41 are somewhat contradictory and misleading, in terms of the importance of the cited caselaw.

Apart from your 4 posts, citing the High Trees case, I've never seen any suggestion of a landlord, on this forum or elsehwere, proposing to vary their contract, in terms of "consideration" i.e. the amount of rent they charge.

Most landlords have a right to expect payment, in accordance with the terms of their AST, especially where the tenant has been in receipt of Housing Benefit or Universal Credit since before the lockdown. From April, 20 the monthly standard allowance has risen by roughly £90 pcm and the LHA rate can now be paid at the 30th percentile, reducing or eradicating any shortfall caused by the previous 4 year freeze on LHA. The Government guidance cited by me, in an earlier post, supports that view.

However, for those directly or indirectly affected by Covid 19, who experience significant or full income loss, and accepting there is likely to be a lag, between being furloughed, having reduced hours, becoming reliant or partially so, on SSP, ESA or being forced to stop non-essentail work and receiving the promised 80% of earnings, SE Grant (in June), or Universal Credit top-up, including "housing costs", there may well be a genuine reason why the tenant cannot pay the full monthly payment.

In those circumstances, landlords should surely accept payments to account, reducing the rent arrears, just as they've been doing for years, without, in any way, prejudicing their rights. Accepting part payment, in those circumstances, with joint acknowlegement full payment is still expected sometime later, when the financial climate improves, is exactly what the Government expects.

To refuse part payment, and insist on full payment, as you seem to be suggesting, is contrary to what's expected and completely at odds with the Pre-action Protocols which may yet be introduced to PRS recovery processes.

Bill

Reply to the comment left by Bill irvine at 12/04/2020 - 13:37
I am not saying that!

I am stating that you must confirm to the tenant that they are still liable for the remaining balance and that you have not agreed to waive the remaining balance when then make these part-payments.

To avoid them running the argument of promise estoppel when you chase them for the outstanding monies !

Reply to the comment left by Clint at 11/04/2020 - 22:16
Clint, thats well done to you for having repayment mortgages. Yes the government found landlords out to be a cash cow, the easiest sector to impose taxes and penalties upon because we are are the only group who cant defend ourselves and protect our profits.

From what I understand property will pick up when this pandemic ends due to low interest rates and high demand. That will then be my escape. I'm considering investing into a property development company with guaranteed annual rates of return instead.

Best of luck to you.

Reply to the comment left by Ingrid Bacsa at 13/04/2020 - 18:28
Thanks for wishing me luck. It seems that we all need a lot of good luck. The properties I have on the market are at a standstill due to the pandemic although, they are priced to be the lowest in the area and I have had offers for two properties.
Worse still but hopefully they prove to be incorrect, the economists of the CEBR have predicted house price falls of 13% by the end of 2020 and the stock market has already priced in a fall of 12%. I don't want to be one spreading bad news especially since we have enough of it at present but, I always believe the more information you have the more prepared you can be.

Reply to the comment left by Clint at 14/04/2020 - 12:00
Well if property drastically falls its best to keep renting and put up with the awful legislation. In my case i will benefit from the low interest rates. I did hear that property would recover swiftly though because of demand and because of the stock market falls.

Anything could happen .

Its gotta get better one way or another Clint. 😁

Reply to the comment left by Clint at 14/04/2020 - 12:00
Stock market will have priced in falls in Commercial property prices relative to the big property companies as these are what are in investment funds.
Many of the owners of shopping centres and malls are in real financial trouble and have been for some time due in part to the debt they are carrying and in part due to the collapse of the High Street retail sector over last few years.
I would submit very different to residential property which still essentially has a shortfall.

Reply to the comment left by Beaver at 06/04/2020 - 14:00
Well said Beaver, there are many costs to landlords that people dont understand . I have 14 properties in my portfolio, all of which are for sale l might add, and the costs of upkeep, insurance, repairs, safety certs and then tenants not paying rent leaves not a lot to play with.
I just wish people would realise the good work we do and stop thinking we are all " millionaires".
Thats my rant for the day, l have hopes we get out of this situation of covid 19 but think it will only add to the demise of decent landlords.

How right you are as way things are goi g the decent landlords will all exit the market.

Reply to the comment left by akhan at 12/04/2020 - 14:16
Which is exactly what our leaders want. Half of them will already be property magnets and will buy up cheap from us. Once the rich mega land LORDS have achieved their goal, the balance will switch in favour of landlords. How we small landlords were able to flourish for so long is amazing.

Reply to the comment left by Ingrid Bacsa at 03/05/2020 - 10:00
It's worse than you think; the government just created an environment in which only the rich can borrow.