Following our earlier article whilst awaiting further information, it’s just been announced that payment holidays will be extended to buy to let mortgages if tenants cannot pay due to the coronavirus pandemic and evictions are to be banned.
The move is part of a raft of measures designed to help private renters stay in their homes if they are ill or face financial difficulties because of the impact of the outbreak on the economy.
Housing Secretary Robert Jenrick announced the relief for landlords along with emergency legislation to stop the eviction of tenants for at least three months.
When the coronavirus threat falls away, landlords and tenants are expected to come to an arrangement to make their deferred rent and mortgage payments.
- Emergency 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
- Landlords will also be protected as 3 month mortgage payment holiday is extended to Buy to Let mortgages
“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,” said Jenrick.
“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.
“These changes will protect all renters and private landlords ensuring everyone gets the support they need at this very difficult time.”
The minister also urged landlords to show compassion to tenants and allow them to remain in their homes wherever possible.
“This important step on buy to let mortgages ensures parity of support, further to the announcement yesterday that the government made for private mortgage holders,” said a housing ministry spokesman.
“To support this announcement 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.”