Telephone iconCall UsTelephone icon0333 0146 683
Our opening hours
Chevron left icon
Knowledge centre

Experts call for the government to cover rents of tenants affected by coronavirus

2-minute read

Mollie Millman

30 March 2020

Facebook iconTwitter iconLinkedIn icon

Tenants impacted by coronavirus should have their rents paid directly by the government, according to experts.

It may be the only way to keep some tenants in their homes, explained David Cox, of ARLA Propertymark.

While this would protect tenants, it could also protect landlords, especially those with a buy-to-let mortgage to pay or those with no other sources of income.

Should the government go further?

The government has already implemented a number of measures to protect landlords and tenants, including a ban on evictions and a three-month mortgage payment holiday.

But in some cases, these measures may not be enough to prevent some tenants from losing their homes.

Tenants falling through the gaps

Mr Cox said: ”Tenants face financial ruin amid mounting rent arrears and crippling debt if they fall through the gaps of the Government's current provisions.

“This is particularly the case for those who work in the gig economy or who are self-employed.

“The knock-on effect of this is that landlords are not receiving their rent and are falling into financial ruin, which ripples out across the economy.”

Incomes are under threat

Tenants face losing their home if they’re not able to pay their rent – and this risk is greater now as incomes come under threat.

Tenants may be unable to work due to illness, or because they’ve unfortunately had their job cut as the economy is forced into hibernation.

Mr Cox explained that by stepping in early, it means everyone in the rental chain can benefit. He said: “For everyone's sake, the Government needs to pay people's rents if they are impacted by the coronavirus.

“It is what the welfare state is there to do and the Government needs to do the right thing.”

Could rent be paid via Universal Credit?

The rental payment system would need to work on a self-declaration basis, according to Mr Cox. Those who have lost their income – either through illness or after being laid off – would apply for their rent to be paid via Universal Credit.

They would send evidence that they had lost their income to the Department of Work and Pensions, and their rent could be paid directly to their landlord.

Evidence could include a sick note issued by calling 111, a P45 or confirmation from their former employer that they had been laid off.

What do you think of this suggestion? Let us know in the comments below.

Sign up for our newsletter

Looking for the latest news and features to help you stay ahead? Sign up for our monthly newsletter and get the inside track on the issues that matter to you.

Sign up now

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.

Facebook icon
Share
Twitter icon
Tweet
LinkedIn icon
Post

People also liked

12 March 20202-minute read

What the UK Budget 2020 means for landlords

Chancellor Rishi Sunak announced the first UK Budget since October 2018 amid continuing political and economic uncertainty. Here’s the key…

Read more

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter

Categories

Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub

Address

6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

© Copyright 2020 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.