Housing associations under pressure to offer rent holidays.

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www.theguardian.com/society/2020/mar/17/housing-associations-under-pressure-to-offer-covid-19-rent-holidays

Housing associations under pressure to offer Covid-19 rent holidays
Millions of tenants may be unable to pay as coronavirus leads to lost work, say charities

Housing associations are under pressure to offer rent holidays after only one pledged not to evict any tenant in arrears due to self-isolating because of the coronavirus.

Millions of people live in 2.4m homes let by housing associations across England, Scotland and Wales. Rents are expected to rise by 2.7% from next month and there are fears many people will be unable to pay after losing work or due to being in self-isolation.

The Labour party has urged the government to ban eviction of tenants whose income has been hit by the outbreak and to allow rent deferrals.

Some people who live in housing association accommodation work in the gig economy or have precarious contracts, with some out of work because of the impact of the pandemic.

Research by the homeless charity Crisis suggests there were more than 25,000 households evicted from housing associations in 2018, the lowest level since 2000, after a gradual exclusion of the poorest tenants from newly available properties.

The Guardian contacted scores of housing associations – some of which describe themselves as companies “with a heart” – but only one confirmed it would introduce measures to prevent the evictions of those who could not pay their bills because of Covid-19

We will stay in regular contact and not initiate any action for rent arrears while they are experiencing difficulties as a result of the virus” said Sarah Sargent from Radian Group, which has 80,000 tenants across south and south-west England.

“Our goal is always for our customers to maintain their tenancies and our tenancy sustainment team already provide support to customers.”

Other large housing associations said they relied on rental income but were monitoring the situation closely amid business continuity planning, while others said they rarely evicted people.

A source with knowledge of discussions between housing associations regarding the scheduled rent increase said events were developing quickly and there was a concern people would not be able to pay rents at all. In 2017, the UK’s housing associations made record operating profits of £3.5bn

Crisis called on the government to ensure renters were not put at greater risk of eviction and homelessness.

“Crisis is calling for a temporary suspension of evictions of both social and private tenants,” said Matt Downie the charity’s policy director. “We are already seeing other countries implement such measures and urge the UK to take similar action as a matter of urgency.

“We would expect all social landlords to adopt the practice of the best, and ensure tenants who experience loss of earnings because of the pandemic are supported so that they are not at risk of homelessness.

The G15 housing associations, which are responsible for about 600,000 homes in London, welcomed the extension of statutory sick pay – £94 a week – to include people advised to self-isolate because of Covid-19 and urged those ineligible to claim universal credit or employment support allowance.

“We are continuing our rent collection processes as normal, which include significant support for tenants experiencing hardship for whatever reason,” a spokesperson said. “G15 housing associations only use evictions in the absolute last resort.”

Chyrel Brown, the chief operating officer at One Housing, said: “We will continue to collect rents as we rely on this income to deliver essential services. We always offer advice and support to residents who find it difficult to pay their rent and will continue to offer this vital support.”

Simon Nunn, an executive director at the National Housing Federation, said: “As charitable organisations [housing associations] are set up to support vulnerable residents and this includes helping those who may struggle financially by providing advice, help with budgeting and access to benefits

Many are working to put additional measures in place to support residents that may fall into rent arrears to get back on their feet.”

Draft legislation on evictions ‘ban’ simply extends notice period to three months

NEWS
23/03/20
10:55 AM
BY PETER APPS

Draft legislation will simply extend the notice period for evictions from two months to three with landlords still able to serve notices on their tenants, Inside Housing can reveal

Twitter IHLegislation to ‘ban’ evictions simply extends notice period to three months #ukhousing
Twitter IHNew legislation will simply extend the notice period for evictions from two months to three, with landlords still able to serve notices on their tenants #ukhousing
Inside Housing has obtained a draft copy of the bill, which would cover England, and is set to go before the House of Commons today. The government had promised it would outlaw evictions in social and private housing during the coronavirus pandemic.

But the bill in fact simply extends the statutory notice period from two months to three for the vast majority of renters – meaning landlords can still serve notice and claim possession at the end of that period.

It also offers no protection to residents who can be evicted without notice – such as those in temporary housing or lodgers
One source said it was possible other draft bills are under consideration, and that this may not represent the final government plan. The Ministry for Housing, Communities and Local Government (MHCLG) was contacted for comment.

No provision is made for rent arrears that will be built up during this period if people are unable to work. The government has previously said it would encourage landlords and tenants to agree “an affordable repayment plan” for these arrears.

The bill is unlikely to take effect before Friday at the earliest – raising the prospect of a slew of notices before this date. One expert described the measures as “pathetic”, and another source called them “complete crap”.

The bill – part of the government’s emergency coronavirus legislation package which will be debated today – will amend Section 21 of the Housing Act 1988 to change the notice period for ‘assured shorthold tenancies’ from two months to three months

These are the type of tenancies the overwhelming majority of private tenants are given, and ‘Section 21’ gives landlords the power to bring them to an end at the conclusion of the lease period, which usually lasts for six months to a year.

To do so, the landlord must serve two months’ notice but does not need to give a reason – a process known as ‘no-fault eviction’ and something the government had previously promised to abolish.

But the new law will simply extend this notice period from two months to three.

Regulated, or Rent Act, tenancies (typically private tenancies which began before 1989) will see the notice period increase from four weeks to three months. Secured and assured tenancies – typically for residents of council homes and housing associations – will also see notice periods extended to three months.

The bill will be in force until 30 September.

Governments for the other countries in the UK may bring forward different measures, with the Scottish government today saying no tenants would be evicted during the period

Update at 11.25am on 23.3.2020

This story was updated to make it clearer that it is possible other draft bills are being developed.

The line "One source said it was possible other draft bills are under consideration" was extended to read "One source said it was possible other draft bills are under consideration, and that this may not represent the final government plan. The Ministry for Housing, Communities and Local Government (MHCLG) was contacted for comment.

Won't rent be covered under UC or HB for people needing to claim? I'm a HA tenant and I know how much HAs have had to let go under rent caps (mental health support had to go from mine). I don't think there should be universal rent holidays for social housing at all.

inews.co.uk/news/coronavirus-uk-government-help-pay-rent-homes-tenants-outbreak-campaign-2513945?utm_source=fb&utm_medium=fb&utm_campaign=ijp&fbclid=IwAR2dnJH_C4N9RDUBAVgENBm5pBVDsQxldNQ9N0iWgwcYsdFIhp-jhSyplqY

Coronavirus in the UK: Government bill to help tenants pay rent during outbreak 'fails to deliver on every aspect'
Tenants will also be expected to strike up a rent arrears agreement with their landlord

By Jasmine Andersson
Tuesday, 24th March 2020

The government's bill to protect renters during the coronavirus outbreak "fails to deliver on every aspect," warn campaigners.

Renters will be protected by the government from eviction for the next three months, even if they cannot pay their rent, announced Prime Minister Boris Johnson during Prime Minister's Questions on Wednesday.

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But scheduled amendments to the current Rent Act and Housing Act will still mean renters can be served notice, and would have to pay back their rent once the emergency measures are over, Inside Housing reported.

Landlords could serve notice during the outbreak
The draft bill scheduled for a reading in the House of Commons on Tuesday, will amend a clause in Section 21 of the Housing Act.

The government previously pledged to scrap Section 21, which gives landlords the right to evict tenants under a "no fault" clause, allowing them to evict tenants after they serve a two-month notice period. But these current plans mean the government has actually extended the statutory period to three months, giving landlords the right to serve notice during the outbreak, and evict tenants by June.

Residents who can currently be evicted without notice, such as those in temporary housing or lodgers, will also be exempt from the amendment to the bill.

Tenants will also be expected to strike up a rent arrears agreement with their landlord if they fail to pay rent after losing their job or earning significantly less during the outbreak, leaving renters at the mercy of the property owner.

Caitlin Wilkinson, Policy Manager at Generation Rent, said: "This legislation fails to deliver on these promises in every respect. All these measures do is extend the notice period for evictions to three months, which will provide little comfort to those faced with losing their homes in the midst of a pandemic. Equally worrying is the lack of provision made for rent arrears, which will stack up in the three month period.

"Many renters will end up with thousands of pounds worth of debt and no means of paying it off. Landlords and tenants are expected to 'work together' to find a solution to suit both parties from June onwards - but there's absolutely nothing to stop landlords from evicting tenants if they can't pay. Eviction is the leading cause of homelessness, so the Government must act now to avoid another crisis in three months' time.

Absolute nonsense'
The Ministry of Housing, Communities and Local Government called the criticisms "absolute nonsense," and said the legislation "guarantees" that no tenant will be forced out of their home.

A spokesperson from the government department told i: “We have made a clear commitment to renters, and the claim that we are rowing back on it is absolute nonsense.

Our emergency legislation will guarantee no tenant is forced out of their home – in either the social sector or the private rented sector – for at least the next 3 months. No possession proceedings from new notices will start during this time, and we have the power to extend this notice period if necessary.”

At the same time, this Government is supporting renters through guaranteeing to pay 80 per cent of employee’s wages, if their employer cannot afford to pay them while they are on temporary leave, and increased housing benefit. We have been clear we will do whatever is needed to support people at this difficult time.”

From Twitter

Toni Jenkins
@amnerisuk
·
1h
@HelloSanctuary
I am a bereaved nurse married to ambulance worker. Twice been phoned pressurising us to clear my late stepfather's flat despite govn lockdown. Grudgingly given 2 week extension. How is this urgent? We could take Covid to vulnerable elderly #StayAtHome

A major housing association is refusing to bow to pressure over their decision to continue charging rent on student accommodation despite university closures during the coronavirus crisis

www.insidehousing.co.uk/news/news/major-housing-association-stands-firm-against-pressure-to-stop-student-rent-charges-during-covid-19-crisis-66173