In response to the Corona virus pandemic, the Government is preparing to put measures in place whereby people could be isolated ranging from a couple of weeks to months in some cases. The RLA (Residential Landlords Association) together with the NLA (National Landlords Association) are calling on the Government and mortgage lenders to put the following measures in place for tenants and landlords :
- A temporary removal of the five week wait before Universal Credit claimants receive their first payment.
- A pause to the final phase of restricting the mortgage interest relief to the basic rate of income tax.
- A sympathetic look from lenders on requests by landlords for mortgage payment holidays where their income has been affected through reduced or non-payment of rent.
The first two points are quite clear in how they will work, however, the final point would need to be clarified by the lenders as to what requirements and at what stages landlords could apply and be entitled to mortgage payment holidays.
The Labour Party have also been vocal on the matter by calling on the Government to implement the above suggestions from the RLA and NLA in addition to the points below when a bill is put to a vote tomorrow (Thursday 19th March):
- Suspend rent and mortgage payments for people affected by the disease.
- A ban on evictions of tenants who’s income has been affected by the disease.
We wait to hear what the Government and lenders decide to do and what action if any will be taken. We are keeping a close eye on the issues that could affect you as our clients and we will update you with any developments.
If you have any questions or if we can assist in any way, please feel free to contact us.
