End of Evictions Ban – Letting Agents Must Prepare for New System

[Grampa]

As the ban on evictions comes to an end this month, letting agents are being warned to prepare for changes to the repossession process – including a new pre-action protocol, a temporarily extended notice period and potentially longer waiting times for court hearings.

Evictions have been banned since mid-March to protect renters who have been financially affected by COVID-19.

 

The ban was originally set to last for three months, but was extended for a further two in June. From August 24, courts will start to hear rental property repossession cases again. The government is also creating temporary ‘Nightingale Courts’ to deal with the backlog of cases.

How will evictions be different?

The impact of COVID-19 and the subsequent evictions ban means that the process of repossessing a property through the courts will be somewhat different.

For example, if a landlord’s possession claim relates to rent arrears or non-payment of rent, they will need to provide information on the renter’s financial circumstances and the effect the pandemic has had on them. (REALLY?????)

If the information is not provided or is deemed inadequate by the courts, they will have the option of adjourning the case. (JUST GREAT) Landlords issuing a notice for eviction will also be required to provide tenants with three months’ notice until September 30.

“Following a five-month hiatus, evicting a tenant through the courts may take longer than usual once the ban is lifted,” says Neil Cobbold, Chief Sales Officer at PayProp.

“The government’s new measures suggest that it wants to limit evictions pursued solely due to COVID-19 arrears. It has also been made clear that the courts will prioritise cases of extreme arrears accrued before lockdown, and cases of anti-social behaviour and domestic violence.”

“It’s vital that agencies communicate the changing situation to landlords so they can assess their options carefully as the ban is lifted,” he says.

Will COVID-19 fuel an evictions boom?

There has been speculation from some politicians and housing groups that lifting the ban on evictions will lead to a spike in COVID-19-related repossessions.

However, research from the National Residential Landlords Association (NRLA) suggests this may not be the case. A survey of more than 2,000 tenants found that over 95% are paying rent in full or have agreed with their landlord to reduce or defer payments.

The research also found that less than a third of renters in arrears, equal to around 2% of the entire sample, have been served with an eviction notice.

“The majority of tenants have been able to pay rent in full during the pandemic and those that haven’t are likely to have made alternative arrangements with their landlord,” says Cobbold.

“Although there will be many new claims and a significant backlog of eviction cases to be heard when the ban ends, the number related to COVID-19 arrears may not be as high as anticipated.”

Agents can help landlords to manage arrears effectively

Cobbold adds that unless landlords are affected by a significant long-term buildup of arrears, or instances of domestic violence and anti-social behaviour, they should only consider legal action as a last resort. (AND WE DONT NOW????)

“If landlords want to deal with tenants who have recently fallen into arrears, there are more effective ways than going through the courts. (I WOULD LIKE TO KNOW WHAT) Letting agents can help them to pursue these options,” he says.

“Agencies can help landlords and tenants to manage rent arrears through affordable repayment plans, digitally recording all payments and automating arrears chasing.” (WHAT? WE DONT DO THAT ALREADY?)

“This also allows agents to maintain a clear paper trail in the event that the landlord does want to pursue an eviction in the future,” he explains. (AND OF COURSE WE DONT DO THAT NOW)

“Ultimately, strong and effective communication with tenants can help to reduce the impact of rent arrears before they become a serious issue.”

“Agents that take this approach can help landlords to manage arrears and recoup unpaid rent while sustaining the tenancy instead of pursuing an eviction through a long and potentially expensive court process,

ANOTHER NAIL IN THE COFFIN FOR THE LETTING INDUSTRY. Though the industry will survive and evolve I can only see it going in one direction long term. Rant over.

[Richlist]

Does the act of obtaining:

* Rent guarantee insurance or

* A home owning guarantor

Ensure that arrears will be paid ?

Does this situation only affect landlords who have not put either of these tools in place ?

[Carryon Regardless]

Thanks for the rant Grampa, my forecast is to expect more of this cr*p. Especially from the Welsh Retard Assembly.

4 of my tenancies went into arrears, 3 HB and 1 not. The 'not' cired a wage reduction of 10% and reduced his rent, w/o any negotatiation so tenant dictated,  by over 25%. He and his G'tor don't understand why I find that unreasonable. So i should take rent as deemed appropriate by the tenant, and when he wishes to pay it.

So would this G'tor result in a favourable result in CC? To find out I must put great effort into making claim, especially if defended. There is risk that the cost of claim will be a further insult to the rent arrears. A sympathetic judge, in my view, would do all possible to relieve both T & G'tor of the unreasonable stress I am applying. Btw the G'tor paid £750,000 cash for his successful B&B property in 2007, and has other business revenues. They don't see issue as they state there are support packages and payment holidays in place, how nice of them to attempt to organise my financial situation to suit their needs. Do I gamble? Better to apply pressure for some settlement before the debt becomes beyond reach of recovery by the T.

I also foresee a situation where T debt is going to be written off by legislation.

No Gov't wants the responsibility of so many potential homeless bods. And if so many look to be undesirable T's what would LL's as a whole do to fill their tenancies anyway.

I'm doing as I can to get as much dosh in. Where I thought CC was a reasonable option I'm no longer sure of that. Eviction, no point. Shelter will get hold of this, when they're operating again, and in the end we will lose out.

But I am happy to assist the genuine cases, where it is affordable.

[Grampa]

42 minutes ago, Richlist said:

Does the act of obtaining:

* Rent guarantee insurance or

* A home owning guarantor

Ensure that arrears will be paid ?

Does this situation only affect landlords who have not put either of these tools in place ?

It is now a very good argument for having them in place now, where previously we could work without most of the time.

Whats the betting RGI premiums will now  increase with major changes to the T&C's within and a higher % or properties requiring a guarantor??

 

[Grampa]

25 minutes ago, Carryon Regardless said:

Thanks for the rant Grampa, my forecast is to expect more of this cr*p. Especially from the Welsh Retard Assembly.

4 of my tenancies went into arrears, 3 HB and 1 not. The 'not' cired a wage reduction of 10% and reduced his rent, w/o any negotatiation so tenant dictated,  by over 25%. He and his G'tor don't understand why I find that unreasonable. So i should take rent as deemed appropriate by the tenant, and when he wishes to pay it.

So would this G'tor result in a favourable result in CC? To find out I must put great effort into making claim, especially if defended. There is risk that the cost of claim will be a further insult to the rent arrears. A sympathetic judge, in my view, would do all possible to relieve both T & G'tor of the unreasonable stress I am applying. Btw the G'tor paid £750,000 cash for his successful B&B property in 2007, and has other business revenues. They don't see issue as they state there are support packages and payment holidays in place, how nice of them to attempt to organise my financial situation to suit their needs. Do I gamble? Better to apply pressure for some settlement before the debt becomes beyond reach of recovery by the T.

I also foresee a situation where T debt is going to be written off by legislation.

No Gov't wants the responsibility of so many potential homeless bods. And if so many look to be undesirable T's what would LL's as a whole do to fill their tenancies anyway.

I'm doing as I can to get as much dosh in. Where I thought CC was a reasonable option I'm no longer sure of that. Eviction, no point. Shelter will get hold of this, when they're operating again, and in the end we will lose out.

But I am happy to assist the genuine cases, where it is affordable.

Where I foresee judges being even more reluctant to evict, taking G's to court I guess would remain the same and maybe the route to go down to recover rent arrears/damages. It doesnt help getting the tenant out though unless the G gets so fed up he does it himself in more of a persuasive manner than we could.😀

[Carryon Regardless]

Some years ago I took a G'tor to court, Rhyl. The result was worse than you could imagine. The Judge worked it so the g'tor had half the claim awarded against him, and to pay at £20 per month starting 3 months on. The court no longer pursues unpaid awards, so with my limited knowledge I would be caused to return each month to get anything. Costs were not considered. 

I got nowt and had to pay more cash not to get it. Being told off for not respecting the court on a hot day as I attempted to remove my jacket was totally uncalled for. The G'tor turned up dressed as a vagrant.

And nowadays the non sympathy for the LL is truly a joke.

[Richlist]

Extended by 4 week's....until 20th September.