Landlords face further rent arrears as Government extends COVID eviction ban once again

It is a very challenging time for landlords as they deal with the difficulties of COVID-19 and the associated eviction ban.

The restrictions and new rules on the repossession of residential properties were first introduced as a result of the original Coronavirus lockdown in March last year.

It was initially only intended to last three months but has now been extended several times to assist tenants who have been adversely affected by the pandemic.

The current ban on repossessions will now remain in place until 31 March 2021 in England and will make it difficult for landlords to recover their properties until later this year.

It is not surprising then that research by the London School of Economics (LSE) and Trust for London, suggests that the number of private tenants in rent arrears in England could treble in the coming year.

This could mean that more than 700,000 tenants and their landlords may get further into financial difficulty.

In response to the ongoing ban, the National Residential Landlords Association has said the Government is making the situation worse for landlords and tenants by allowing debts to mount up. 

This is because, despite the eviction ban, the rent on properties remains due and so millions of pounds of arrears have accumulated on properties across the UK. 

This has left many landlords in a difficult situation, where they not only face losing their investment properties but also their own homes due to being unable to cover the cost of buy-to-let mortgages. 

Tenants and landlords are being asked to communicate with one another and discuss alternative arrangements and, where possible, tenants should continue to make rental payments to the best of their abilities.

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