Property Litigation specialist lawyer, Will Bartley, provides an update on how residential lettings have been impacted by the pandemic; what this has meant for landlords and tenants; and how this will evolve over the next few months.
For information on the impact on commercial lettings, Fiona Knight has recently written an article addressing this, which can be read here.
Government legislation, shielding, self-isolating, furlough etc. These are all terms that have become part of daily life since early 2020. Their impact can be felt by both landlords and tenants, as it has affected both greatly.
How has the pandemic impacted tenants?
Many tenants, especially those who have seen a reduction of income through either furloughed salaries or loss of business earnings, have been extremely worried about meeting their rental payment obligations.
This has resulted in an increase in tenant debt, rent arrears and anxiety amongst many as to their housing situation.
Government legislation has looked to assist tenants in this regard by placing a temporary ban on evictions in the summer of 2020, extending both Section 21 and Section 8 Notice periods substantially to afford tenants more time to find alternative accommodation or additional time to try and pay off accrued rent arrears.
The new Breathing Space scheme was also introduced to allow the most vulnerable tenants the opportunity to seek debt relief assistance without the imminent threat of eviction.
How has the pandemic impacted landlords?
For landlords, the pandemic has left many with a severe reduction in their rental income, many of whom would not be subject to furlough payments to assist with this, and therefore numerous landlords have lost their only source of income for over a year.
Whilst the Government has encouraged landlords to mediate with their tenants by way of payment plans, rent reductions and rent waivers, many landlords are now in severe financial difficulties themselves due to the accrued rent arrears of tenants across the country.
We have represented a multitude of landlords over the past 12 months in possession proceedings whose tenants have stopped paying rent entirely for more than a year. We have even seen some tenants fail to pay any rent since the day they moved in.
Can I evict my tenant and how long will this take?
The answer to this question has changed many times over the past 18 months due to the varying amount of notice that landlords have been required to give, along with various bans on both bringing proceedings and enforcing them with the Bailiffs.
The situation as of August 1st 2021 is as follows:
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