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Rent in case of shutdown

3 replies

canihaveacoffeeplease · 17/03/2020 07:00

I'm really concerned what will happen to both business and individuals in case of a shutdown where people cannot work, and wonder if anyone has any light to shed on this?

If businesses (particularly small-medium) are forced to shut very quickly they will be unable to pay rent. I'm talking especially hospitality and retail businesses who often have expensive premises, but office type premises too. Surely the governments cannot allow tens of thousands of businesses to go under? The knock on effects for employment are massive. I accept they are currently pretty huge with many people not getting a lot of hours, but if business go bust,there is no chance of a job to go back to. Can/will they step in to pause rent/provide interest free loans? I have read they are planning billion dollar bailouts for airlines, can/will they bail
out other businesses?

In addition to this, many many people rent their homes, and many of them rent privately. In case of shutdown, huge numbers of people will be unable to earn, therefore unable to pay rent, and many wouldn't have enough savings to pay short termly, let alone long term if they lose their jobs. Apparently a lot of banks are offering mortgage holidays to help those in need - can/will this be passed on to renters? Again the issue of millions of homeless people caused by the inability to work due to coronavirus would be massive, surely the government would HAVE to step in to avoid a homelessness crisis on an unprecedented scale?

OP posts:
Sargass0 · 17/03/2020 07:07

There's some legislation currently being drafted by Labour with the aim of having the government implement it.

"that where there was failure to pay contractual rent that was in any way related to the effects of the coronavirus during a designated period, this would not count as rent lawfully due for the purposes of the relevant rent arrears grounds of possession"

This for assured, assured shorthold and rent act tenancies.

8by8 · 17/03/2020 07:12

It’s hard. I let out a flat (because we couldn’t sell! Accidental landlords) and if I don’t get rent I can’t pay the mortgage. So it needs to tie in with mortgage holidays.

SachaStark · 17/03/2020 07:16

We are so, so, so lucky. Our private landlord messaged us totally out of the blue last night, and said that we shouldn’t be worrying ourselves about not being able to pay rent because of Coronavirus, but to tell him as soon as possible, and he would sort it out at his end.

Bless that man. I’m really hoping that other private landlords will be able to do the same for their tenants.

I’m guessing he would probably apply for a mortgage holiday, and that would then filter down to us not having to pay rent 🤷🏼‍♀️

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