Suspention of evictions to renters who can't pay, but....

[SuperlativeScrubs]

What is going to happen to the rent arrears after the 3 month period?

Will landlords just wait and take court action after the cut off date?
Will they raise the rent for x amount of months to recoup their losses?
Will they then evict tenants who can't cover these arrears after the fact?

I am very much struggling to understand how this will be managed in terms of the losses landlords will face and how it will negatively affect tenants once the suspension is lifted. Especially as they may not suddenly become reemployed after 3 months.

I haven't read the latest on this, but it's only the suspension of issuing of notices of possession, surely, as in S8 for non payment of rent if 8 or more weeks in arrears?

That's how I've understood the measures. But happy to be corrected.

Evictions can take longer than three months. So I'm unsure as to how such measures will work.

They say there is more to be announced so I hope they have considered this. We are really worried

Suspension of eviction is the priority over arrears. It needs to include no fault evictions. Otherwise tenants won't be able to self isolate if they need to find a new home. Some will have underlying conditions and it's particularly important for them to be protected.

I wonder how many people are going to use this to their advantage.

The landlord still likely has a mortgage to pay. They might be giving a break on mortgages but is that both residential and BTL?

The mortgage break has been extended to btl mortgages but I assume you will need to prove hardship caused by Covid 19 to qualify

As will renters

@Sunshinedelight1287 yes it includes BTL.
I wonder what happens if you already have a section 8 in place, I guess it will be put on hold. The payment breaks are just that though, a break, the amount will be added to your mortgage loan so the LL will still pay

As with most of the financial problems caused by this virus, the govt would be better going directly to wage subsidies

I own a place that is rented out and I am working with the estate agent so if issues arise we can work together with the tenants. I am worried and don’t want to lose them as they are good tenants too and it’s not as likely the place can get re rented with viewings unlikely

Will the government pay the rent or will it be that the landlords are just not paid? I wouldn't dream of evicting my tenants but at the moment the rent is our sole source of income.

If they temporarily* removed the LHA limits and benefit cap so that anyone who ends up on UC/benefits due to Corona virus is guaranteed to get their full rent paid, it would solve the problem for both tenants and landlords. Also pay UC from day 1 i.e. no 5 week wait or loan that causes further hardship.

*I say temporarily when I think it should actually be permanent, but I'll save that fight for another time.....

Any link where we can read up on this?

We rely on rent to pay our mortgage as my husband cannot work.
If one of our tenants cannot pay, we wouldn't just chuck them out but it would impact our finances severely, if I lost my job for example

Another issue is that of guarantors. I've just lost my job due to this and hoping universal credit comes through in time.
But.. my father is my guarantor on my lease (just in case anyone doesn't know, it means he is legally required to pay my rent if I cannot, used very often as a condition to renting for those trying to on low incomes and uses someone who signs for it and earns usually over say 20,000, to guarantee the rent).
He couldn't in reality afford to pay my rent for any longer than a month or two. But legally would still be required to.