Spring is finally here and unlike any other year, the current feeling in this country is not that of elation as we finally emerge out of a long and dreary winter, instead it is of uncertainty. The Coronavirus is impacting all of us personally and professionally and the UK Property Market is having to adjust to the impact of COVID-19 for Buyers, Sellers and Lettings.
On March 18th, 2020, the Government announced a radical package of measures to protect renters and landlords affected by the Coronavirus. The emergency package includes legislation to suspend new evictions from social or private rented accommodation while this national emergency is taking place. No new possession proceedings through applications to the court to start during the crisis and Landlords will also be protected as a three-month mortgage payment holiday is extended to Buy to Let mortgages.
ARLA Propertymark informed members that emergency legislation would be taken forward as an urgent priority so that landlords will not be able to start proceedings to evict tenants for at least a three-month period.
Recognising the additional pressures that the virus may put on landlords, the Government has confirmed that the three-month mortgage payment holiday announced earlier in the week will be extended to landlords whose tenants are experiencing financial difficulties due to Coronavirus. This important step on buy-to-let mortgages ensures parity of support, further to the announcement that Government made for private mortgage holders.
David Cox, ARLA Propertymark Chief Executive said: “We are very conscious of the plight of tenants in these difficult times and appreciate any Government action to help those affected by the current situation. Letting agencies rely on rental payments and therefore the Government must help to ensure agents can maintain their current service levels during any period where rent is not being paid. Specifically, we are calling on the Government to extend the retail discount on business rates to estate and letting agents.”
Housing Secretary Robert Jenrick 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.”
At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances. To support this the government has worked with the Master of the Rolls to widen the ‘pre-action protocol’ on possession proceedings, to include private renters and to strengthen its remit. This will support the necessary engagement between landlords and tenants to resolve disputes and landlords will have to reach out to tenants to understand the financial position they are in.
Yianni Aresti, Founder and Lettings Director at David Astburys said, “We have received a large number of calls and e-mails from Tenants asking about rent reductions/rent holidays since the announcement of the new legislation, the positive news for Landlords is that Buy To Let Landlords will also qualify for mortgage holidays for the interim period.”
What is clear is that many agencies have already adapted the services they offer with social distancing being encouraged in the form of offering virtual and video viewings and valuations to potential buyers to view a home for sale without physically visiting it, using popular mobile apps such as WhatsApp, Facetime, Skype and Zoom.
George Sifonos, Managing Director at David Astburys said, “We at David Astburys understand that as the situation develops many clients will have questions about the impact of COVID-19 on the UK Property Market and the Sales and Lettings process and our entire team are still working to continue servicing our clients whilst adhering to Government Safety Guidelines to ensure the wellbeing of our staff and clients, all be it in an adapted form. We are being reactive and agile and offering Virtual and Video Viewings and a number of other services during this new climate.”
David Astburys Estate Agents
Address 15 Park Road, Crouch End, London N8 8TE
Opening Hours: Mon – Fri: 8.30am – 7pm Sat: 10.00 – 5pm
Tel: 020 3000 6787
Email: [email protected]
Website: www.davidastburys.com
