Scottish private rental market faces collapse unless ALL landlords are offered Coronavirus loans

Two leading industry organisations have made the claim, saying government is currently only offering single-unit landlords the loans at the moment. Scotland’s rental sector is at risk of large-scale collapse unless larger portfolio landlords are offered help from the government’s loan scheme, say landlord and housing groups. Landlords in the region can now apply for […] ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Scottish private rental market faces collapse unless ALL landlords are offered Coronavirus loans | LandlordZONE.

Scottish private rental market faces collapse unless ALL landlords are offered Coronavirus loans

Two leading industry organisations have made the claim, saying government is currently only offering single-unit landlords the loans at the moment.

Scotland’s rental sector is at risk of large-scale collapse unless larger portfolio landlords are offered help from the government’s loan scheme, say landlord and housing groups.

Landlords in the region can now apply for an interest-free loan with deferred payments if their tenants are having difficulty making payments because of the Covid-19 crisis.

The scheme covers 100% of the rental income from one property, however, the Scottish Association of Landlords (SAL) and Chartered Institute of Housing Scotland believe many tenants could be left without homes as struggling landlords exit the sector.

SAL chief executive John Blackwood says. “A small-scale landlord operates the same way as other SMEs, some of which may be entitled to government support for each of their separate outlets.

Rent arrears

“We would ask for a similar position for landlords, even if this was on a sliding scale for additional properties and where the impact of rent arrears can be evidenced.”

He suggests that landlords with more than one property should be made to declare that their business doesn’t qualify for any of the other coronavirus support available, such as the job retention scheme, business grants, business rates holiday or self-employed support.

“This would quickly and easily achieve the same goal but ensure landlords who need support do not slip through the cracks,” says Blackwood.

He adds: “Debt worries will make landlords less likely to use this support, leading instead to them selling up and exiting the sector, reducing housing supply at a time when it is most needed.”

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Scottish private rental market faces collapse unless ALL landlords are offered Coronavirus loans | LandlordZONE.

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Former shadow chancellor urges tenants to break legally binding rental contracts

John McDonnell is the most high profile politician to back a campaign urging renters to stop paying their rent if they need to prioritise food and other living expenses. Former Labour chancellor John McDonnell is backing a call for tenants to break legal contracts and stop paying rent. Along with a group of union leaders […] ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Former shadow chancellor urges tenants to break legally binding rental contracts | LandlordZONE.

Former shadow chancellor urges tenants to break legally binding rental contracts

John McDonnell is the most high profile politician to back a campaign urging renters to stop paying their rent if they need to prioritise food and other living expenses.

Former Labour chancellor John McDonnell is backing a call for tenants to break legal contracts and stop paying rent.

Along with a group of union leaders and MPs, he’s urging renters to prioritise essential spending instead of rent.

McDonnell says: “Renters are facing immense worry and hardship because of the pandemic. Radical action is needed to support them and nothing should be ruled out including suspension of rents, rent controls and of course, the longer term supply of the decent homes needed.”

London Renters Union is heading the charge to organise a rent strike movement, following the lead of activists in the US and Australia.

It wants people to pledge online at www.cantpaywontpay.uk to withhold enough of their rent to meet their basic needs, including food and bills. Its open letter has been signed by Labour MPs including Clive Lewis, Kate Osborne and Ian Byrne, who want rent payments suspended during the crisis and the cancellation of rent debt.

The union says millions of people feel enormous pressure to prioritise rent over buying food. It points to its recent YouGov poll which discovered that two-thirds of people agree that there are circumstances where those who’re struggling to make ends meet should stop paying rent.

A spokesman adds: “We are ready to take further collective action if the Government fails to adequately address the growing Coronavirus rent crisis.”

Another campaign, backed by Open Labour and Momentum, is calling on the Labour Party to adopt a cancel the rent policy, and has been signed by thousands of members.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Former shadow chancellor urges tenants to break legally binding rental contracts | LandlordZONE.

Source : Landlord Zone More   

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