Tenants Start to Default on Rent Due to COVID-19 (Corona) Virus

Many landlords will face financial difficulty as a result of rent defaulting. Tenants all over the UK have already started to default on rent payments due to the coronavirus pandemic outbreak.

There are around 5 million households across the UK who live in rented accommodation. And many landlords report they are already experiencing cases of tenants who default on rent due to the coronavirus. This is because many people have had their working hours reduced, some have even been made redundant or laid-off. As the country is struggling with the virus, many employers are faced with extremely difficult decisions to be made on whether they can afford to keep their employees. As a result, more and more people are finding themselves in dire situations where they can no longer afford their homes. 

The government are under pressure to help people stay in their rented homes.

the Prime Minister said today: “I can indeed confirm that we will be bringing forward legislation to protect private renters from eviction.”

If you find yourself in a situation where you can no longer afford to pay your rent because of the coronavirus outbreak, there are a few steps you can take. First of all, speak to your landlord and explain your situation. Ask for more time to pay and suggest instalments. It’s also a good idea to pay what you can. Secondly, stay up to date with the government announcements. They have promised to publish new legislation soon.

Housing Minister Robert Jenrick talked about new legislation that would prevent landlords from evicting tenants for three months. At the same time, landlords would be getting a mortgage holiday from their lenders. However, while the government are promising mortgage holiday, not every landlord will be able to get it. There are also landlords who are mortgage free and rely on their rental property for income.

To read the full press release on the topic, please click here.

If you need help, please contact Novum, the best managing agent.

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