Private Tenants To Receive Protection
18th March 2020
18th March 2020
These are challenging times for every individual and business across the country. However, it is easy to see why many people are concerned about their homes, especially at a time when so many people face a reduction in income. Many people are looking towards the Government to offer reassurances about what may or may not happen if households experience the worst.
On Tuesday 17th of March, the Chancellor of the Exchequer announced there would be "mortgage holidays" on offer for people who faced financial difficulty. These payment holidays shouldn't be viewed as free money, payments still need to be made, but many people were heartened to hear some level of protection has been issued to homeowners.
However, there was no announcement regarding tenants at this time, which led to criticism from many quarters. After pressure from both inside and outside the House of Commons, the Prime Minister has announced emergency legislation to offer private tenants protection from eviction.
The leader of the opposition, Jeremy Corbyn, led calls for protection to be offered to assist private tenants. One of the biggest concerns at the moment is people feeling compelled to attend work as to ensure they generate income to pay their monthly rent. However, doing so may put their health, and the health at others at risk.
Corbyn says private tenants have been "worried sick that they can't pay their rent if they get ill, lose pay or feel they need to self-isolate".
The Prime Minister has responded by saying the legislation will be introduced which protects tenants from eviction. However, there is a need to ensure that problems are not passed on and that there is a suitable level of protection throughout the industry.
David Cox is the Chief Executive of ARLA Propertymark, and he said; “We agree that the Government must do “whatever it takes” to safeguard tenants in these unprecedented times. We, of course, have to support tenants as they face uncertainty over the coming months, while as the Prime Minister has said, ensuring we don’t simply pass on the problem to other actors in the economy.”
There is a need to ensure landlords and tenants are protected in the current environment. While the introduction of the “mortgage holiday” is perhaps far from ideal, it does offer landlords a degree of comfort in the event of tenants being unable to pay their rent. Therefore, it would only be fair if tenants are afforded the same sort of safety net.
Jon Sparkes is the Chief Executive of Crisis, and he said: “It’s reassuring to hear that the government is planning to bring forward legislation to protect renters during the COVID-19 outbreak. People renting need to know that, in these uncertain times, they’ll be able to keep a roof over their head come what may.”
If you want to remained fully informed about the housing market and letting industry, we are here to help. Please contact Merrys today if you have any issues or concerns, and we will do our best to assist you.