Tenant eviction ban extended in UK by two months

[msi]

21 minutes ago, Huggy said:

Some VI (NRLA) on BBC News a moment ago asking for some kind of loan scheme to 'help' landlords tenants clear up any rent arrears.

I do hope they are losing a lot of sleep at the moment. I do also hope that the repo actions are swift and merciless.

I doubt it, courts are jammed and everything will be done under 'forbearance'  less some pretty little thing has her picture in front of the Daily Fail.

[Saving For a Space Ship]

Main article ...

 

Private renters in England on ‘cliff edge’ as eviction ban ends

 

 Councils and charity Shelter voice concern as ministers are warned homelessness crisis could cost the state £2.2bn

 

https://www.theguardian.com/money/2021/may/30/private-renters-in-england-on-cliff-edge-as-eviction-ban-ends

 

Potential commercial eviction meltdown after ban ends  from Ft 

Commercial landlords and tenants braced for £6bn rent decision

https://www.ft.com/content/f9897cfa-d57b-4001-9fcd-9aca8c85d1bd

Quote

British Retail Consortium  said two-thirds of retailers in the UK are at risk of legal action on at least one of their stores, after a ban on evictions and debt collection from commercial tenants lifts on June 30.

 

ending of the ban could lead to the closure of “thousands of shops” 

Ministers consider how to replace eviction and debt collection ban ending on June 30

Edited May 31, 2021 by Saving For a Space Ship

[Sprite]

22 hours ago, highcontrast said:

Apologies if already mentioned, but surely there will be numerous BTL scumlords who got so fed up of not being able rinse their tenants out if their over inflated monthly rent or not being able to throw them out during the eviction ban that they throw in the towel and sell up? A sudden influx of rental properties onto the market in the near future?

 

Edit: The anecdotal that made me think of the above, a friend's aunt (who I met many years ago) has a rental, was rented out to some Polish guys, thanks to Covid/eviction ban they didn't pay rent for months and months and have now left without a trace, and have stripped the place dry, by that I mean they took the boiler and the electricity and gas meters!

I have a feeling this kind of scenario is surprisingly common, but is not mentioned freely as it's no doubt very embarrassing.

So no rental income and now a bare shell of a house! Who'd be a BTL scumlord hey!

Suffice to say I pi55ed myself laughing when I heard the story

I've been listening to David Lammy on LBC this morning who was talking about eviction ban and as you can probably guess there were lots of LLs moaning stating that tenants are gaming the system and choosing not to pay.

I still think the LLs who have 1 or 2 properties will struggle and those with a much larger and diversified portfolio will ride this storm out. Having said that, it is getting more onerous now to rent out properties with more regulation so the days of accidental LLs may be over.

It will be interesting to see what happens but I don't think it will bring overall property prices down - although I hope i'm wrong.

 

[spyguy]

1 hour ago, Sprrite said:

I've been listening to David Lammy on LBC this morning who was talking about eviction ban and as you can probably guess there were lots of LLs moaning stating that tenants are gaming the system and choosing not to pay.

I still think the LLs who have 1 or 2 properties will struggle and those with a much larger and diversified portfolio will ride this storm out. Having said that, it is getting more onerous now to rent out properties with more regulation so the days of accidental LLs may be over.

It will be interesting to see what happens but I don't think it will bring overall property prices down - although I hope i'm wrong.

 

LL should be well capitalised.

Any LL that cannot eat a 6 month void needs to leave the sector.

[Price doubt]

Radio 4 today were laying the foundations for further “help the tenants” (to help the landlords) lest there should be a glut of rental properties forced to the markets. The only down side I can see to the current situation is temporary pain in the transition back to a more sensible housing market.

[spyguy]

8 hours ago, Price doubt said:

Radio 4 today were laying the foundations for further “help the tenants” (to help the landlords) lest there should be a glut of rental properties forced to the markets. The only down side I can see to the current situation is temporary pain in the transition back to a more sensible housing market.

Theyve tried to do balance - showing a tenant, then a LL whos not been paid rent.

As above, the ban just allows an eviction notice to be served.

Getting it thru court, so the eviction be be enforced will take more than 12 months.

[hotblack42]

12 minutes ago, spyguy said:

Getting it thru court, so the eviction be be enforced will take around 12 months for a large minority of landlords with tenants who are fraudulent or have nothing to lose.

Edited.  Agree its going to be a rough ride for many landlords but not all.  Many tenants will back down, find a way to leave & negotiate an arrears write off when push comes to shove.

Thus is the death throes of amateur landlordism as we finally progress to a better, but still lightly*, regulated rental market dominated by the pro outfits with thousands of properties.

*Most politicians own properties.

Edited June 1, 2021 by hotblack42
Clarity

[winkie]

18 hours ago, Sprrite said:

I've been listening to David Lammy on LBC this morning who was talking about eviction ban and as you can probably guess there were lots of LLs moaning stating that tenants are gaming the system and choosing not to pay.

I still think the LLs who have 1 or 2 properties will struggle and those with a much larger and diversified portfolio will ride this storm out. Having said that, it is getting more onerous now to rent out properties with more regulation so the days of accidental LLs may be over.

It will be interesting to see what happens but I don't think it will bring overall property prices down - although I hope i'm wrong.

 

No such thing as an accidental landlord......they do it for the money, an investment risk, they rely on the tenant to pay or if not hopefully the state will pay.....will the state pay? they seem to be bailing out all who hold their hands out, everyone now wants their bit of state handouts and help.....who would have thought it would come to this?

[Saving For a Space Ship]

C4 New's take on it - Million households fear losing homes as evictions ban ends today in England https://www.channel4.com/news/million-households-fear-losing-homes-as-evictions-ban-ends-today-in-england

[winkie]

Rents need to come down to align with new low interest rates.......falling rents mean falling property prices will naturally follow......it is the only way housing will become more affordable for all........better to collect some rent than no rent at all......that is unless want to have the illusion that value is still high and there are plenty that will pay the high rents asked for.

[crescent]

1 hour ago, winkie said:

Rents need to come down to align with new low interest rates

Rents costs are dictated by supply and demand - many LL will not have any mortgage so interest rates will be of no consequence to them anyway.

 

 

[Bruce Banner]

1 minute ago, crescent said:

Rents costs are dictated by supply and demand - many LL will not have any mortgage so interest rates will be of no consequence to them anyway.

 

 

So why are you always banging on about "Paying your landlord's mortgage"?

[winkie]

20 minutes ago, crescent said:

Rents costs are dictated by supply and demand - many LL will not have any mortgage so interest rates will be of no consequence to them anyway.

 

Many landlords do have low interest rate debt and/ or have leaveraged up nicely thank you, they chose to get out of cash for obvious reasons......many landlords expect the state to pay growing rents ongoing, increasing yields when yields elsewhere have been falling......there is a name for this scheme, now what was it?

[highcontrast]

My landlord wants six months' rent upfront'

https://www.bbc.co.uk/news/business-57289888

Kinda what I was inferring, BTL scumlords pooping themselves in case they get stung another eviction ban/losing all their power to their tenants again.

And also what I mentioned before, they are thinking about or at least threating to sell up.

Interesting times.

 

 

Edited June 1, 2021 by highcontrast

[sammersmith]

1 hour ago, highcontrast said:

My landlord wants six months' rent upfront'

https://www.bbc.co.uk/news/business-57289888

Kinda what I was inferring, BTL scumlords pooping themselves in case they get stung another eviction ban/losing all their power to their tenants again.

And also what I mentioned before, they are thinking about or at least threating to sell up.

Interesting times.

Hmm, this doesn't ring true

Quote

Last year, he borrowed money to cover a demand for six months' rent upfront on a new flat he shares with a friend.

 

Now the six-month tenancy is about to end and he has been asked for another six months - about £5,000.

Is his friend paying any rent or contributing at all? I assume this £5,000 represents the full rent for the property for 6 months, as that's £833 pcm. 

£833 is the cost for a standard cheaply built swanky flat in Manchester. The price drops dramatically if you go further out / less desirable areas, and agents can't afford to be so demanding about tenant financial situations. That would be my advice to Daoud - not his real name. 

[Saving For a Space Ship]

17 hours ago, sammersmith said:

Hmm, this doesn't ring true

Is his friend paying any rent or contributing at all? I assume this £5,000 represents the full rent for the property for 6 months, as that's £833 pcm. 

£833 is the cost for a standard cheaply built swanky flat in Manchester. The price drops dramatically if you go further out / less desirable areas, and agents can't afford to be so demanding about tenant financial situations. That would be my advice to Daoud - not his real name. 

it is well documented in other media recently that LL are asking for 6 months up front  

[winkie]

8 minutes ago, Saving For a Space Ship said:

it is well documented in other media recently that LL are asking for 6 months up front  

Typical scenario....relationship breaks down, house with mortgage has to be sold and equity divided....one or both parties not got a job that could buy a home on their own......can only rent, so use house equity to pay 6 months rent and to live on until gone, then the state takes over with a helping hand.

[Saving For a Space Ship]

 CBI urges more support for businesses struggling to pay rent

UK lobby group wants eviction ban extended for companies with incomes below 30 per cent of normal levels

https://www.ft.com/content/57e49c11-2e80-4fe9-ae3c-aaa6dae5c4f0

Quote

An estimated £6bn in arrears has built up and ministers are considering a range of proposals to navigate a crisis that has left landlords out of pocket and many companies on the brink of collapse.

the British Independent Retailers Association, said almost a third of his members had some form of rental debt.

CBI urges gov’t to extend rent moratorium for struggling retailers  

https://www.retailgazette.co.uk/blog/2021/06/uk-lobby-group-urges-govt-to-support-retailers-struggling-to-pay-rent/

 

Calls to Nicola Sturgeon to extend the pandemic eviction ban

https://www.glasgowtimes.co.uk/news/19345664.calls-extend-eviction-ban/

Edited June 5, 2021 by Saving For a Space Ship

[Dorkins]

.

Edited June 5, 2021 by Dorkins

[MonsieurCopperCrutch]

3 hours ago, Dorkins said:

.

Spit it out Dorkins boy. What did you want to say lad?

[Saving For a Space Ship]

This ain't going to help ...

 

Cut of £40m in help for tenants will ‘drive up homelessness’

 

Renters’ groups shocked as funding in England and Wales for rent shortfalls or deposits is cut to below pre-pandemic levels

 

https://www.theguardian.com/money/2021/jun/06/cut-of-40m-in-help-for-tenants-will-drive-up-homelessness

[Saving For a Space Ship]

How tenants can fight back against ‘no-fault’ evictions as thousands face losing homes

https://www.thesun.co.uk/money/15210830/tenants-fight-back-evictions-overturned/

[hotblack42]

2 hours ago, Saving For a Space Ship said:

How tenants can fight back against ‘no-fault’ evictions as thousands face losing homes

https://www.thesun.co.uk/money/15210830/tenants-fight-back-evictions-overturned/

For balance.  Why is a tenant getting into financial difficultysomething landlords should carry the can for?  When tenants leave an AST to rent a better place in a better location should they sit down with the landlord and help them with finding a new tenant?

Some landlords who have charged a reasonable rent & promptly sorted out any issues want their house back after a period of years. Why are they lumped in with scumlords?

[erat_forte]

26 minutes ago, hotblack42 said:

For balance.  Why is a tenant getting into financial difficultysomething landlords should carry the can for?  When tenants leave an AST to rent a better place in a better location should they sit down with the landlord and help them with finding a new tenant?

Some landlords who have charged a reasonable rent & promptly sorted out any issues want their house back after a period of years. Why are they lumped in with scumlords?

Its not their house, its the renter's house as long as the renter pays the rent.

[hotblack42]

3 hours ago, erat_forte said:

Its not their house, its the renter's house as long as the renter pays the rent.

Oh I agree wholeheartedly.  I've been an OO, OO + Tenant, and OO + Tenant + Landlord, so can see all sides.

Once the AST period is over the house is still the tenant's until then end of the last month they pay rent for having been served a properly completed s21 notice.  We've recently served one because its a better time to sell than 3 years ago when Brexit uncertainty f***ed up the housing market.
In 2016 I received an S21 on a house in South Woodford.  It was not welcome as we were paying the going rate for a flat.  It never crossed my mind to parade around saying 'This is my house', or look for errors in the landlady's paperwork, she seemed like a nice lady and needed to come home from Spain.  We moved on.