Yesterday the UK Prime Minister, Boris Johnson, announced the Government are bringing in a law to stop any eviction proceedings commencing against tenants for at least a three-month period. The effects of the virus on the UK economy mean that some tenants may lose their jobs and be unable to pay their rent and the Government do not want people made homeless.
While the vast majority of our tenants will not suffer as they are corporate professionals, we do expect to see a drop in payments from some tenants. Rest assured, we will do our utmost to ensure there is minimal issue for you – our credit control teams remain fully operational and this will continue, even if a total lockdown is introduced.
The Law does not mean that tenants do not have to pay rent, it just means they can’t be evicted right now if they don’t pay. There will be increased “pre-action protocols” to ensure there is engagement between landlords and tenants which we will look to implement once further details are announced.
The Government has said that when the crisis ends landlords and tenants will be expected to work together to establish an affordable repayment plan taking into account the tenants’ individual circumstances.
The Government recognises that this will place increased pressure on landlords to meet their own financial commitments. Landlords will be able to apply to their mortgage lender where applicable for a three-month mortgage payment holiday. I would recommend you speak to your lender to see if they will offer this to you.
As we receive further details of the legislation, we will update you.
Further information can be found at this website:
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