I can’t help feeling a bit racked off
As of 21st September 2020 (yesterday) a landlord now has to give 6 months notice in order to get vacant possession of their property. Even if your tenant isn’t paying you rent.
There are a few exceptions such as anti social behaviour, domestic abuse, criminal behaviour. In this instance you can exercise a two week to one month notice period. But, you basically have to go through hell and back first.
Oh but wait, surely there’s a silver lining
You can now get a court order for possession. This should be encouraging news but be warned I’ve seen a few posts on social media where courts have set dates for hearings in 2021! So now landlords are waiting 6-12 months all the while not getting rent.
For me there is an obvious solution. If governments can support businesses and Universal Credit is basically handed out hand over fist why can’t the councils pay the landlords their rent direct? It has been done in the past, it can be done again. Show landlords some support!
I get it, the admin involved would be a task and a half but surely the repercussions are worse?
The way I see it you have three potential scenarios for non payment of rent:
- The Landlord doesn’t get rent for 6 months. They then have to wait another 3-6 months to get a court order. The landlord then take’s a mortgage holiday to ‘assist’. They come to re-mortgage their property and they can’t because they have taken a mortgage holiday so they have to move over to the higher rates and they become a mortgage prisoner.
- Same scenario as above but the landlord want’s to sell instead. They can’t sell it with a non paying tenant to an investor or anyone else for that matter and the debt builds higher and higher until it goes bang.
- Finally, your tenant has been paying rent on time but you want to sell because it’s all been getting too much. The majority of investors are out because they want vacant possession so they can add value first. You can’t find a buyer who’s willing to wait six months for your tenant to leave and risk when the time comes the tenant refuses to. Equally, you can’t afford to leave the property empty.
What are the government trying to do here?
I completely understand that people need housing but landlords need tenants too. Most of us value our tenants. Why can’t there be a system where we can all work together! 6 Months notice is unrealistic.
They set up Furlough overnight. Bounce back loans, CBILS loans, set up pretty much over night. Some of my tenants informed me all they had to do was call the council and they got a hardship loan into their account within days of up to £800.
Don’t get me wrong, the financial support is great for the people that need it but don’t tell me more can’t be done to help support landlords too.
#landlords #investors #property #covid #universalcredit #rant