Protection for the rental sector and residential landlords

The Government is introducing emergency legislation to protect renters and their landlords who are affected by the COVID-19 pandemic.

In ‘normal’ circumstances, a residential landlord may seek to evict their tenants in circumstances that their tenants are not paying the rent. Due to the enormous impact that the pandemic is having and will continue to have on the economy and people’s jobs for many months to come, the Government is proposing to prohibit new evictions. These new rules apply to both social housing and private lettings.

In order to support private landlords whose rent is unpaid, the Government is also providing those landlords with an initial 3 month mortgage repayment ’holiday’ on their Buy to Let mortgages. Therefore the banks and lenders will not be able to take action on the unpaid mortgages at this time.

Depending upon how long the pandemic continues to affect the economy, this 3 month period may be extended further.

It is hoped that Court proceedings would be avoided in the longer term, by the landlord and their tenant working together to try to agree an affordable repayment scheme, which in turn will be put to the lender.
Housing Secretary Robert Jenrick MP said:
“The government is clear – no renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.
These are extraordinary times and renters and landlords alike are of course worried about paying their rent and mortgage. Which is why we are urgently introducing emergency legislation to protect tenants in social and private accommodation from an eviction process being started.”