A landlords’ group has said that as many as 840,000 private tenants could be behind on their rent payments across England and Wales.
The National Residential Landlords Association (NRLA) says that around seven per cent of renters are in arrears as a result of the pandemic, equating to 840,000 people.
On average, tenants owed between £251 and £500, while some owed more than £1,000.
Those aged between 18 and 24 were twice as likely as other tenants to be in arrears, with self-employed individuals also more likely to be behind on their rent.
Ben Beadle, Chief Executive at NRLA, said: “Our research highlights in stark terms the rent debt crises now engulfing the rental market. While the vast majority of landlords have done everything possible to support tenants affected due to Covid-19, expecting them to muddle through without further support is hurting tenants as well as landlords.”
He added: “Ministers need to accept that simply banning repossessions does nothing to keep tenants in their homes long-term. In fact, it will achieve the complete opposite as in kicking the can down the road it just means larger debts piling up, creating a bigger problem for tenants and also for landlords.
“To sustain tenancies, the Government need to provide an urgent financial package to get rent debts built due to the pandemic paid off.”
Palmers Solicitors’ Makayla Phillips, who specialises in property disputes and landlord and tenant issues, said: “The Government’s implementation of a third national lockdown has inevitably resulted in greater economic difficulties and financial hardship.
As a result, on 11 January 2021, revised guidance was issued for landlords regarding gaining possession of a rental property via the Court process.”
What are the key changes?
- Landlords can still serve notice using the section 21 or section 8 process. (subject to meeting statutory requirements)
- In the majority of cases, notice periods are 6 months, effective from 29 August 2020 in England. These are in place until at least 31st March 2021
- In most situations, no bailiff evictions will take place in England until at least 21 February.
Makayla added: “Landlords are being urged not to commence or continue possession proceedings during this challenging time without a very good reason to do so.”
If you are experiencing issues either as a landlord or a tenant, it is important to seek prompt legal advice to fully understand your legal rights and the options available to you if you become involved in a dispute.
The property litigation team at Palmers are here to help and provide quick and cost-effective legal assistance. For help and advice, please contact our expert team.