The recent coronavirus pandemic is far from over in Britain and across the world. Despite what can only be described as a ‘global tragedy,’ support has mostly been available for those who need it. For example, many workers across the UK received a furlough, providing near enough full income for several months. Others, however, unfortunately, lost their jobs.
Nonetheless, further support includes the no eviction policy, food banks, small business loans and grants, and more. However, in particular, the no eviction policy has gained a significant amount of attention. Many residents perceive landlords as wealthy, perhaps greedy, and without the need for rent from their tenants during this difficult time.
This article will discuss the untold truth of landlord’s hardships during the coronavirus pandemic. Contrary to popular belief, many landlords are like you or me, struggling to meet ends meet and relying on payments to keep their kids fed, a roof over their heads, and their bills paid.
The no eviction policy
Towards the beginning of lockdown, a no eviction policy was introduced for tenants who rent a property. Regardless of whether rent was paid, landlords cannot evict their tenants for at least three months.
In retrospect, this sounds great. The introduction of the policy keeps people off the streets with a roof over their heads. We agree, this is a fantastic thing. However, what about the landlords? As previously discussed, many landlords are not wealthy. In fact, they may be in a greater difficult situation: struggling to pay multiple mortgages, bills, and providing a hot meal every night for their children, perhaps on little to no income.
Mortgage holidays are available for those with a buy to let mortgage, but once those run out, or if the landlord is not eligible, they may find themselves in quite the cash struggle.
However, just this week (September 10th, 2020), it was announced
that the no eviction policy has been extended to six months. This is and will create real hardships for landlords - if no payment is received, they could be in real trouble, relying solely on their savings or other income sources to make payments.
Counting coins and making payments
Landlords not eligible for a mortgage payment holiday, or those negatively impacted economically by the pandemic themselves may find themselves in quite a pickle. With little to no income, perhaps also losing their main job, and now not receiving any rental income, they may actually be worse off than others.
Whilst tenants do not have to pay rent if financially unfeasible - landlords are forced to count coins and make the payments without the original funding from their tenants’ rental income.
Most landlords are not wealthy or rich - they, too, are facing devastating economical consequences as a result of the recent coronavirus pandemic. If rental income is not paid to the landlord, they may struggle to meet mortgage payments, place them at risk of debt or worst-case scenario, lose a property, and file for bankruptcy.
With the three month increase of the no eviction policy (now six months total), landlords are in for a rough ride during the build-up to Christmas. If tenants cannot pay rent, they should immediately discuss this with their landlord, calculating some form of payment plan.
Remember, we’re all in this together. While landlords may have one or more properties - this does not mean they are ‘wealthy,’ it could actually mean they are worse off given the current circumstances.