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Tenant arrears - and it aint getting better soon.


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Our research highlights in stark terms the rent debt crisis now engulfing the rental market,' said Ben Beadle, chief executive of the NRLA.

'Ministers need to accept that simply banning repossessions does nothing to keep tenants in their homes long term.'

'It will achieve the complete opposite, as kicking the can down the road just means larger debts piling up, creating a bigger problem for tenants and also for landlords.'

The NRLA is asking the Government to provide tenants with guaranteed interest-free hardship loans as well as boosting benefit payments.

'To sustain tenancies the Government needs to provide an urgent financial package to get rent debts accrued during the pandemic paid off,' added Beadle.  

Tom Mundy, chief operating officer at lettings technology company Goodlord believes that today's figures are a true reflection of what is being seen across the UK's lettings market.

Mundy warns that without intervention from the Government, there will likely be mass evictions and huge pressures on the courts come spring. "

 

... Or all the houses will disappear...

Edited by Si1
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"

Our research highlights in stark terms the rent debt crisis now engulfing the rental market,' said Ben Beadle, chief executive of the NRLA.

'Ministers need to accept that simply banning repossessions does nothing to keep tenants in their homes long term.'

'It will achieve the complete opposite, as kicking the can down the road just means larger debts piling up, creating a bigger problem for tenants and also for landlords.'

The NRLA is asking the Government to provide tenants with guaranteed interest-free hardship loans as well as boosting benefit payments.

'To sustain tenancies the Government needs to provide an urgent financial package to get rent debts accrued during the pandemic paid off,' added Beadle.  

Tom Mundy, chief operating officer at lettings technology company Goodlord believes that today's figures are a true reflection of what is being seen across the UK's lettings market.

Mundy warns that without intervention from the Government, there will likely be mass evictions and huge pressures on the courts come spring. "

 

... Or all the houses will disappear...

No tenant would take out the loan. 

They'll squat until evicted. 

Then the government will pay the next landlord through the benefits system. 

30% below going rate for area or some such. 

So landlords will try to make tenants share rooms...

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They'll squat until evicted. 

I thought that was illegal now for private houses and one call to plod can have them all arrested and put in the nick? 
 

Not sure at what point a non paying tennant becomes A squatter? When a judge orders they are no longer a tennant is guess? 

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I thought that was illegal now for private houses and one call to plod can have them all arrested and put in the nick? 
 

Not sure at what point a non paying tennant becomes A squatter? When a judge orders they are no longer a tennant is guess? 

No moving out after a tenancy ends is not squatting.

 

 

 

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"

Our research highlights in stark terms the rent debt crisis now engulfing the rental market,' said Ben Beadle, chief executive of the NRLA.

'Ministers need to accept that simply banning repossessions does nothing to keep tenants in their homes long term.'

'It will achieve the complete opposite, as kicking the can down the road just means larger debts piling up, creating a bigger problem for tenants and also for landlords.'

The NRLA is asking the Government to provide tenants with guaranteed interest-free hardship loans as well as boosting benefit payments.

'To sustain tenancies the Government needs to provide an urgent financial package to get rent debts accrued during the pandemic paid off,' added Beadle.  

Tom Mundy, chief operating officer at lettings technology company Goodlord believes that today's figures are a true reflection of what is being seen across the UK's lettings market.

Mundy warns that without intervention from the Government, there will likely be mass evictions and huge pressures on the courts come spring. "

 

... Or all the houses will disappear...

Hey, wait......are we saying that the worldwide pandemic may impact real money and real economy and maybe the house price boom of 2020 was all built on smoke, mirrors and sentiment. 

Well who would have thunk that 😉

Thin end of the wedge....politically printy printy more likely to stop when people could be expected (by the mass voters) to survive on their own ie get a job, get a new job if the old ones gone and those for whom nothing is available go onto basic benefits. Then let’s see where rent, the economy and house prices end up....I bet not ‘20% up in a year or two’. 

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"

Our research highlights in stark terms the rent debt crisis now engulfing the rental market,' said Ben Beadle, chief executive of the NRLA.

'Ministers need to accept that simply banning repossessions does nothing to keep tenants in their homes long term.'

'It will achieve the complete opposite, as kicking the can down the road just means larger debts piling up, creating a bigger problem for tenants and also for landlords.'

The NRLA is asking the Government to provide tenants with guaranteed interest-free hardship loans as well as boosting benefit payments.

'To sustain tenancies the Government needs to provide an urgent financial package to get rent debts accrued during the pandemic paid off,' added Beadle.  

Tom Mundy, chief operating officer at lettings technology company Goodlord believes that today's figures are a true reflection of what is being seen across the UK's lettings market.

Mundy warns that without intervention from the Government, there will likely be mass evictions and huge pressures on the courts come spring. "

 

... Or all the houses will disappear...

https://www.nrla.org.uk/campaigns/coronavirus

Funding for renters, justice for landlords

Join us in lobbying the Government

 

Justice for LL??????

Eh?

Update: Courts reopen

Following successful lobbying by the NRLA, from Monday 21 September 2020, the courts have reopened across England and Wales. There may be some restrictions in certain areas due to local lockdown measures, and new rules around possession and court procedures apply. For more information see our blog here and our resources section.

Yeah cause they did, just for you.

Civil stuff will take a waaaaay lower priority over serious and normal crime.

The NRLA is calling for the Government to support the private rented sector:

  1. Interest free, government guaranteed hardship loans for tenants. Providing tenants with a means to pay off COVID-related arrears will sustain tenancies and remove any risk of eviction as furlough is removed. These should be paid directly to landlords and should cover all arrears accumulated since the start of the pandemic. This has already been introduced in Wales.
  2. Income support for landlords. If a tenant refuses, or is unable, to take up a loan then landlords must be able to cover arrears through grants.

 

 

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Im sure that LL are the professionals they claim to be.

They'll have low leverage and ~12 months rent cover for each house.

 

 

Indeed. High leverage and no 12 month rent cover would mean they have not taken adequate consideration as to business risk.

They are a business and should as such, have studied before entering into business, (like any other business) business risk.

They cannot expect other workers via the tax they pay, to bail them out, if they have not made provision for their own business risk.

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16 hours ago, richmondtw said:

and destroy their credit rating - no reference next time they want to rent 

I think you might misunderstand the current supply and demand dynamic in renterland.

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On 04/01/2021 at 07:53, spyguy said:

The NRLA is calling for the Government to support the private rented sector:

  1. Interest free, government guaranteed hardship loans for tenants. Providing tenants with a means to pay off COVID-related arrears will sustain tenancies and remove any risk of eviction as furlough is removed. These should be paid directly to landlords and should cover all arrears accumulated since the start of the pandemic. This has already been introduced in Wales.
  2. Income support for landlords. If a tenant refuses, or is unable, to take up a loan then landlords must be able to cover arrears through grants.

 

 

I love it how the tenants have to take out loans, but the landlords need grants. Typical!

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21 minutes ago, Clarky Cat said:

I love it how the tenants have to take out loans, but the landlords need grants. Typical!

Considering the young policy civil servants working for the govt are probably renting then this isn't a delicate point.

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13 hours ago, msi said:

...and let HMRC take a good look at your books :)

This along with furlough cash is where HMRC needs to take a good look. The NLRA request to Government is ridiculous and would turn into another scam. Any frankly does it matter to the economy if a landlord goes bust? No it doesn’t as the housing doesn’t vanish.

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22 minutes ago, Mikhail Liebenstein said:

This along with furlough cash is where HMRC needs to take a good look. The NLRA request to Government is ridiculous and would turn into another scam. Any frankly does it matter to the economy if a landlord goes bust? No it doesn’t as the housing doesn’t vanish.

I have argued the point before that if the housing market tanks it creates opportunities.  People can buy in areas they want to work, communities can be built with better social cohesion and less reliance on handouts.  People will have more money to spend locally rather than the money going to the banks and shareholders.  Sure, the people who go bust have less to spend but one landlord with 30 houses could create 30 family homes when liquidated.  

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3 hours ago, satsuma said:
3 hours ago, Mikhail Liebenstein said:

 

I have argued the point before that if the housing market tanks it creates opportunities.  People can buy in areas they want to work, communities can be built with better social cohesion and less reliance on handouts.  People will have more money to spend locally rather than the money going to the banks and shareholders.  Sure, the people who go bust have less to spend but one landlord with 30 houses could create 30 family homes when liquidated.  

Yes agreed

However to get to the point of the housing market tanking while we have such low interest rates there would have to be a massive economic downturn with mass unemployment first creating those who hold current mortgages unable to pay their debts. If this would happen it would not be a case of people going bust and there being plenty of others to take their place at a lower price as the people wanting to take their place would also be part of a bad downturn. 

It could happen but there would be much upheaval and economic turmoil for much of the population first it would not be a smooth transition.  

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