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8 big changes affecting your finances this month including end of furlough and payment holidays

OCTOBER is set to be a month of big changes for many people’s finances as coronavirus support starts to wind down.

From the furlough scheme and payment holidays ending, to new payments for self-isolating – here’s everything you need to know about what’s changing.

  1. Furlough ending

More than 9million people have been furloughed at some point during the coronavirus pandemic.

And on 31 October the scheme which has covered 80% of wages up to £2,500 each month will come to an end.

The Coronavirus Job Retention Scheme (CJSR) as it’s officially known was first announced in March and has undergone some changes since then.

That includes people being able to return to work part-time, a reduction to the slice of wages the government covers and an increase in how much employers pay as it has wound down.

A new scheme has been announced to replace the furlough scheme from 1 November, but it is stricter and unlikely to support as many people.

The Job Support Scheme will pay some of the wages of those able to work at least a third of their usual hours, with the government and the employer paying some of the hours not worked.

Sadly many workers are facing redundancy when furlough ends, but there are some important things to check if you face losing your job so you don’t miss out on money you’re owed.

2. Debt repayment holidays ending

People with loans, credit cards and other types of credit were offered the opportunity to take payment breaks to ease the pressure on their finances caused by coronavirus.

Banks and lenders were told by the financial regulator to make these payment holidays available for three months initially and then a further three months on top.

That includes:

  • credit cards
  • car finance
  • personal loans
  • stores and catalogue cards
  • buy-now-pay-later schemes
  • rent-to-own policies
  • payday loans

Many people have taken advantage of this, essentially pausing the money they have to pay back (though interest still builds up).

But this specific support won’t be extended any further and you have until 31 October if you want to apply.

After this, there will still be help available and anyone experiencing financial difficulty is urged to get in touch with their bank, lender or provider as soon as possible.

The help available will be tailored to individuals and may still include a payment break and other help, but it will not be the kind of blanket-wide approach offered before.

Anyone who has already taken a break will continue to pause payments for the period of time already agreed.

For example, someone who started a three-month payment break on 1 September would continue through to 1 December.

For anyone who taken a break and is still struggling when repayments start again, there are new rules for support and lenders must consider suspending, reducing, waiving or cancelling any interest, fees or charges to prevent the debts getting out of control.

Any new help you get from 1 November onwards can affect your credit score, whereas lenders had agreed that the support for borrowers before 31 October would not impact credit scores.

The bank should help you understand how any support you get can affect your credit file.

Remember, any breaks from payment must always be agreed with your lender – never just stop paying.

3. The end of interest-free overdrafts

Interest-free overdrafts of up to £500 have been made available to those who need it during the pandemic.

The deadline for asking for a three-month interest-free overdraft is 31 October.

Some banks offered an interest-free overdraft automatically during the pandemic – you didn’t end to request it – but these have now ended.

But you can still request one before the 31 October if you’re struggling.

And if you’ve already had an interest-free overdraft for three months, you can ask for a further three-month interest-free period before 31 October.

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Anyone who has had this support will be contacted by their bank to see if they need further help.

After 31 October, banks will still offer help, but this will be on a case-by-case basis.

This tailored support could include reducing or waiving interest, agreeing a programme of staged reductions in the overdraft limit, or support to reduce overdraft usage by transferring the debt.

Any new help you get from 1 November onwards can affect your credit file and your bank must explain this to you, whereas support before 31 October does not impact credit scores.

4. The end of mortgage payment holidays

Homeowners have been able to take a break from repaying their mortgage if their finances have been impacted by the pandemic.

More than a million people have already taken a break and anyone who hasn’t already done so has until 31 October to apply for one if they need it.

Those who have already taken a break can also still apply for a second pause before 31 October.

The break is temporary and interest still builds up which can mean you pay back more in the long term, the length of the loan can be longer or repayments higher when you start paying them back.

These payment holidays will not have a negative affect on your credit file.

After 31 October, there will still be help available and anyone experiencing financial difficulty is urged to get in touch with their bank or lender as soon as possible.

The help available will be tailored to individuals and may still include a payment break and other help, but it will not be the kind of blanket-wide approach offered before.

Support after this date may appear on your credit file but the bank should explain to you if that’s the case and what it means for you.

Mortgage lenders should get in touch with you when your payment holiday is coming to an end to explain what your options are.

Remember, any breaks from mortgage payment must always be agreed with your lender – never just stop paying.

5. Repossessions to start again

Home repossessions have been halted throughout the pandemic to prevent people from losing their homes.

From 31 October they can start again and whatever stage the repossession was at, it can continue from there after this date.

Anyone in arrears should get in touch with their bank and they may also be able to take advantage of the mortgage payment support outlined above.

Get in touch with Shelter for free advice if you’re worried about your home being repossessed.

  1. Insurance payment breaks ending
    Insurance customers have been able to take a break from paying their premiums if they’ve been financially affected by coronavirus.

There has also been other help on offer, such as reassessing customers’ risk profiles and tweaking policies to reduce premiums and waiving fees for any changes or cancellations.

Payment deferrals of between one and three months are available until 31 October.

This help will come to an end and from 1 November anyone struggling financially should contact their insurer directly to see what help may be available.

  1. New £500 quarantine payment
    Millions of families on low incomes in England will be paid up to £500 if they have to quarantine to stop the spread of the coronavirus.

Just fewer than 4million people on benefits in England will be eligible to the extra payment if they’re told to self-isolate, according to the government.

You will be eligible to claim the payment if you work full-time, part-time, self-employed or unemployed and you receive one of the following benefits:

  • Universal Credit
  • Working tax credits
  • ESA
  • JSA
  • Income support
  • Pension credit
  • Housing benefit

The payments are only available to those who can’t work from home and will lose income as a result and you will only get the payment if you have been asked by the official NHS Test and Trace team to self-isolate.

If you decide you have to quarantine because you are displaying symptoms, then you won’t be eligible for the funds, even though you’re following the guidance.

The payments will be available to anyone who has to self-isolate from 28 September onwards, but you’ll need to wait until your period of self-isolation is over before making a claim.

They will be managed by local authorities, like a payment scheme trialled in Oldham, Blackburn and Pendal, but the system isn’t expected to be running until 12 October.

Anyone who falls ill after the scheme launches but before the system is running will receive a backdated payment.

Find out more about the £500 quarantine payment here.

  1. State pension age increasing
    From 6 October the state pension age will be 66 for both men and women.

The minimum age for claiming the state support in old age was 65 but that has been increasing over the past few years to reach 66 this month.

And historically the age has been different for men and women but that has been equalised over several years.

So anyone retiring from 6 October 2020 onwards will have to wait until 66 at least (thought the age for accessing a personal pension is 55).

There are further changes ahead though, with plans to increase the state pension age to 67 between 2026 and 2028 and then to 68 between 2004 and 2046.

Bank of England chief economist Andy Haldane has slammed “Chicken Licken” doom and gloom views over the impact of coronavirus on the UK economy.

Self-employed parents have less than a week to claim coronavirus grants worth up to £14,000 if they weren’t previously eligible for them.

Homeowners will be given £5,000 in energy saving vouchers to help them insulate their homes – and you can apply now.

By Lynsey Barber

Source: The Sun

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UK GDP forecast to shrink by around 10 per cent in 2020

Economic forecasters expect UK GDP to contract by around 10 per cent in 2020 following a tightening of coronavirus restrictions.

New research published today by PwC has forecast a contraction of between 11 and 12 per cent for the year, while S&P Global has predicted the UK economy will contract by 9.7 per cent.

Both firms anticipate GDP to rebound going into 2021, but uncertainty caused by Covid-19 means the UK’s recovery could take several years.

PwC believes there could be growth of around 10 per cent or 4 per cent next year, depending on the spread of the virus and the measures needed to control it.

If Covid-19 remains relatively contained, the economy could return to pre-lockdown levels by the end of 2021, the report said. However, further outbreaks and lockdowns could see any recovery last until mid 2023.

Meanwhile, S&P said the economy was on course to grow by 15 per cent in the third quarter, and could rebound by as much as 7.9 per cent next year.

Slow recovery

However, the report said the UK would not reach pre-pandemic levels until 2024 at least. It cited the tightening of measures and local lockdowns, as well as an “abrupt switch to a bare-bones trade agreement with the EU in the new year” as reasons for the lower forecast.

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“Despite the promising start, many hurdles are ahead on the path to recovery, and we now see the economy slightly worse off over the next three years, compared with our previous forecast. Most importantly, COVID-19 is proving hard to beat,” S&P Global Ratings senior economist Boris Glass said.

Most sectors are predicted to return to growth in 2021, according to PwC, including retail and hospitality.

However, in its report it noted that there may be regional variation due to the sectoral mix across regions.

“Regions which have seen targeted lockdown measures are more likely to experience bigger economic impacts, whereas London may recover more quickly as it was less impacted by the drop in output in 2020,” the report said.

Senior economist at PwC, Jing Teow, said: “Uncertainty over the economic outlook and job security, as well as the desire for more precautionary savings, mean that it will take time to recover to normality, even once economies are fully open, although a recovery in 2021 could be buoyed if there is a vaccine.”

He added: “For businesses, too, uncertainty over the outlook, potential overcapacity – especially in structurally challenged sectors such as air travel and tourism – as well as higher debt levels as a result of necessary crisis survival measures, could impact innovation and future productivity growth.

“However, with more money available once recovery has been achieved, a deals-led recovery is likely, with investment opportunities available for savvy businesses.”

By Michael Searles

Source: City AM

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Sunak warned winter economy plan not enough to stop wave of job losses

Rishi Sunak’s winter economy plan will not be enough to stop a wave of redundancies unless hard-hit industries such as hospitality and the arts receive further support, the government has been warned.

After cancelling the budget, Sunak announced a series of measures on Thursday, including a new wage subsidy scheme, to support jobs. They received cautious applause from several major trade bodies and business lobby groups.

But the UK chancellor also faced accusations of abandoning millions of freelancers and whole sectors of the economy such as nightclubs, live music venues and theatres, that cannot access wage subsidies because they are not allowed to reopen.

Sunak’s plans included a long-awaited replacement for the furlough scheme that will see the government and employers share the cost of paying wages.

July’s VAT cut for hospitality – from 20% to 5% – will be extended to the end of March, while struggling businesses will get longer to pay back government loans.

Dame Carolyn Fairbairn, director general of the UK’s leading business lobby group the Confederation of British Industry (CBI), praised Sunak for “bold steps” that she said would preserve hundreds of thousands of jobs through the winter. She insisted that 2021 could be a year of “growth and renewal” as a result.

Adam Marshall, director general of the British Chambers of Commerce, said the plan was a “shot in the arm” for businesses.

But the measures were not met with universal optimism. The Institute of Directors, which represents business leaders who will be making hiring and firing decisions over the coming months, said it was “not yet clear how much the job support scheme will help hard-pressed firms hold onto staff”.

The IPPR thinktank said the time taken to come up with the plan had already cost thousands of jobs and the measures did not go far enough.

UK coronavirus job losses: the latest data on redundancies and furloughs
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IPPR’s executive director, Carys Roberts, said the plan “does not support businesses enough to prevent layoffs, and will be cold comfort to firms that are fundamentally viable but can’t operate at all due to local or sector restrictions.”

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Hospitality has been hit particularly hard by the pandemic and multiple trade bodies had warned earlier this week that a quarter of the UK’s 100,000 pubs, bars and restaurants could close, with the loss of 675,000 jobs, unless they were given sector-specific support.

The sector includes thousands of businesses, including small city-centre pubs and nightclubs, that are unable to reopen or are not permitted to do so, and are therefore unable to make use of wage subsidies.

Speaking after Sunak’s announcement, which included an extension of the VAT cut on food, UK Hospitality’s chief executive, Kate Nicholls, said the chancellor needed to provide more support for a sector that was “not out of the woods”.

“Things were looking grim for our sector yesterday and we were desperately hoping for some good news,” she said.

“The chancellor has given us some reason to be positive again, but we urge him to engage with the trade on specific measures to keep people in work.

“We need government to go further in hospitality, recognising the greater restrictions imposed upon us, and pick up the full cost of unworked hours,” she said.

“This would be a relatively low cost for huge reward for our workforce. Full support to sustain people in their jobs during what could be a pretty bleak winter for hospitality would be a great step forward.”

Sunak was also accused of letting freelancers slip through the cracks, particularly those working in creative industries such as theatre, where venues remain closed and are therefore also unable to tap into government wage subsidies.

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“The job support scheme may help some employers, but it will not help to save theatres that are still not able to open due to government restrictions and are already making thousands of workers redundant,” said Philippa Childs, head of creative industries union Bectu.

“The army of freelancers and self-employed who make up the backbone of the UK creative industries face being excluded from support once again as the chancellor continues to turn a deaf ear to their hardship,” she said.

“Without more support the UK creative sector will not get through the winter, we desperately need a targeted plan to save jobs and ensure that one of the most productive parts of our economy can survive the winter.”

Conservative MP Julian Knight, who chairs the culture select committee, said workers in the industry had been left facing a “grim future”.

Three million people who were left out of the self-employment income support scheme (SEISS) will also not benefit from the new measures, according to law firm Blick Rothenberg.

“For a Conservative government which is meant to support entrepreneurship, it appears illogical to continue ignoring such a large number of workers,” said director Robert Salter.

SIBA, the trade body for independent breweries, said its members had not had access to business grants and warned that the continued exclusion of alcohol from the VAT cut would further hurt them and the “wet-led” alcohol-focused pubs they sell to.

By Rob Davies

Source: The Guardian

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Coronavirus: UK economy slumped by a fifth in second quarter

The UK economy suffered a record-breaking collapse in the second quarter, slumping 19.8 per cent as the coronavirus pandemic hammered demand and left swathes of the economy unable to operate.

Gross domestic product shrank by 19.8 per cent in between April and June, the Office for National Statistics said, slightly less than the initial 20.4 per cent estimate but still more than any other major advanced economy.

The fall in GDP was the biggest since ONS records began in 1955, with output slumping to its lowest level since 2003. Britain’s economy had already shrunk 2.5 per cent in the first quarter.

The ONS said that the UK’s economy shrank more in the first half of 2020 than any other G7 nation.

Output has rebounded in recent months but the recovery looks to be fading with rising coronavirus cases and forecasts of a jump in unemployment as the government scales back job support.

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“The bulk of the pain of the second quarter’s slump in GDP had been borne by the government rather than households and businesses,” said Capital Economics’ Ruth Gregory.

“But with the recovery already flattening off, fiscal support fading and the full scale of the fallout in unemployment yet to be felt, that will change in the second half of 2020,” she added.

Households saved a record 29.1 per cent of their income in the three months to June, the data showed, compared to 9.6 per cent in the first quarter.

The increase in savings came as consumers were unable to spend in many shops and restaurants during the lockdown, while many incomes were supported by the furlough scheme, which comes to an end next month.

“Of course, all this backward-looking news is less important than the timelier data which has suggested the rapid rebound phase has already come to an end in September,” said Gregory.

“The renewed Covid-19 restrictions will probably mean that GDP stagnates in the fourth quarter, leaving economic activity marooned 5.5 per cent short of its pre-crisis level. And the risk now is that renewed containment measures send the recovery into reverse.”

Source: City AM

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Second charge market “gradually recovering”

The Finance & Leasing Association (FLA) has revealed that second charge mortgage new business volumes fell by 64% year-on-year in July 2020.

The trade body said that £40m worth of second charges were lent during the month from 966 cases.

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Fiona Hoyle, head of consumer & mortgage finance at the FLA, said: “The second charge mortgage market is gradually recovering with new business of almost 1,000 new agreements in July, up from a crisis-low of 486 new agreements in May.

“Lenders are continuing to do all they can to support customers during this challenging period and customers experiencing payment difficulties should contact their lender as soon as possible.”

By Kevin Rose

Source: Best Advice

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Almost half of UK businesses say they will make redundancies this year

Close to half of all UK businesses think they might have to reduce headcounts before the end of the year, new figures show.

Researchers found that 42% of small and medium sized enterprises think they will have a smaller workforce in December than they did in September.

An online survey from Censuswide and Virgin Money also showed that companies are worried about their futures, with nearly a quarter thinking they might go out of business in the next year if there is a second wave of Covid-19.

The figures speak to a gloom in the business world, as companies prepare for what to do when the Government’s furlough scheme ends on October 31.

However, the survey was carried out before Chancellor Rishi Sunak announced a raft of new measures which he hopes might help save jobs.

The Treasury promised last week to pick up part of the tab if companies cannot take their workers back full-time.

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But the data also shows that many companies were not tempted enough by previous Government measures to hold onto their staff for just another couple of months.

In August Mr Sunak promised companies whose staff had been furloughed that they would get £1,000 per employee they brought back and kept on the books until the end of January.

Businesses who have parted ways with the workers by December will therefore not be in line for the cash.

Researchers asked 501 decision makers at small and medium sized enterprises between September 4 and September 7 about their plans for the future.

The online survey found that 17% of businesses think it is very or somewhat likely that they will be forced to close in the next 12 months.

“If there is a second national lockdown, that figure rises to 24%.

“The results make for sober reading, but they are unsurprising given the extraordinary disruption of the last six months,” said Gavin Opperman, group business director at Virgin Money.

He added: “While the Chancellor’s newly announced schemes may help stave off the worst of the closures over Christmas, both the Government and the banks need to look for pragmatic ways to provide support for SMEs and the economy moving forward.”

By Neil Shaw

Source: Wales Online

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No-deal Brexit could hit UK economy three times as hard as coronavirus

Failure to reach an agreement with the EU in post-Brexit trade talks could hit Britain’s economy three times harder in the long term than coronavirus, a think tank has warned.

Queues at the border, shortages of fresh food and medicine as well as more “hassle” travelling to the continent are also possible, according to the UK in a Changing Europe group.

A report by the organisation, based on modelling with the London School of Economics, said the impacts of coronavirus may mitigate or obscure the impact of a no-deal exit.

But it warned that not forming an agreement with Brussels would have a significant impact in the long term.

The authors wrote: “The claim that the economic impacts of Covid-19 dwarf those of Brexit is almost certainly correct in the short term.

“Not even the most pessimistic scenarios suggest that a no-deal Brexit would lead to a fall in output comparable to that seen in the second quarter of 2020.

“However – assuming a reasonably strong recovery, and that government policies succeed in avoiding persistent mass unemployment – in the long run, Brexit is likely to be more significant.

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“Our modelling with LSE of the impact of a no-deal Brexit suggests that the total cost to the UK economy over the longer term will be two to three times as large as that implied by the Bank of England’s forecast for the impact of Covid-19.”

The transition period, which kept the UK aligned to the EU’s single market and customs union rules to allow trade to flow smoothly after Brexit, expires at the end of the year unless both sides agree to an extension – something Boris Johnson has ruled out.

Trade deal talks between the two sides are continuing, but the Prime Minister has set a deadline of October 15 for an agreement to be reached, otherwise he has said he will simply walk away from the negotiating table.

Professor Anand Menon, director of the UK in a Changing Europe, said: “While the Prime Minister said no deal is a ‘good outcome’ our report shows that it may lead to significant disruption and will have a significant negative economic impact.

“As significant will be the political fallout of no deal, particularly with the UK and EU, but also inside the UK, particularly Northern Ireland, and internationally too.”

Source: iTV

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Mortgage holders to face a ‘very challenging period’ in the event of a second lockdown

MORTGAGE holders are set to struggle in the coming months if another national lockdown is introduced. New research that families with credit card debt, mortgage repayments or childcare costs may face dire consequences if more stringent rules are introduced in the winter.

Mortgage repayments and other debt obligations have been offered a reprieve in recent months as the government launched payment holidays for a number of assets. However, many of these holiday schemes will be coming to a close soon and there are fears that a second lockdown could make situations very difficult for families.

On this, comparethemarket.com produced a survey of 2,093 adults based in the UK which revealed that many are worried for the future.

Around a third of families with children detailed they would find it difficult to pay their bills and 33 percent would struggle to afford to look after their families if another national lockdown were imposed.

Additionally, over a fifth (22 percent) of families with children expect to take a pay cut or reduce their hours in the near future, with 27 percent expecting their jobs to become endangered in the event of a second lockdown.

Worryingly, 23 percent detailed they would have to take on additional debt to afford the costs of lockdown, with a quarter explaining that they’d have to take out, or extend, a payment holiday (for mortgages and/or credit cards) to keep afloat.

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This lowers to 11 percent and eight percent respectively amongst households without children at home.

Fortunately, families with children are taking steps to protect their finances as much as possible in the event of a lockdown.

Around a fifth (19 percent) are putting more money aside in case something happens to their job, with 60 percent trying to save more and spend less, and a quarter are actively looking for additional sources of income, such as another job.

John Crossley, the head of money at comparethemarket.com, provided the following comments along with the research: “When the UK went into lockdown during March, the financial repercussions rippled across the country but were felt the most amongst those families with children at home and those with more mouths to feed.

“Although the economy has now largely reopened, the prospect of a second wave of infections, and even another national lockdown, is clearly causing significant financial anxiety.

“Parents are caught between the prospects of higher costs on the one hand and diminished income on the other, particularly as the furlough scheme comes to an end.

“Our data shows that 22 percent of parents expect to take a pay cut or reduced hours in the near future and over a quarter believe another nationwide lockdown could put their job at risk.

“Banks and financial services providers have responded very positively during the last several months.

“All the signs point towards them needing to continue to be flexible in the coming months. “Payment holidays and deferred payments will be an important means of helping UK families stay afloat in what unfortunately looks to be a very challenging period ahead.”

This week, the Prime Minister introduced new coronavirus themes restrictions but in a statement made in the House of Commons, Mr Johnson stressed that the new changes were not the start of a second lockdown but should instead prevent one.

As he confirmed: “The Government will introduce new restrictions in England, carefully judged to achieve the maximum reduction in the R number with the minimum damage to lives and livelihoods.

“I want to stress that this is by no means a return to the full lockdown of March.

“We are not issuing a general instruction to stay at home.

“We will ensure that schools, colleges and universities stay open – because nothing is more important than the education, health and well-being of our young people.

“We will ensure that businesses can stay open in a Covid-compliant way.

“However, we must take action to suppress the disease.

By CONNOR COOMBE-WHITLOCK

Source: Express

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Second local lockdown could cost London more than £2bn

London could face annual costs of more than £2bn if fresh curfew measures are implemented in the capital, according to a new report.

Leading think tank the Centre for Economics and Business Research (CEBR) today warned that 10pm curfews introduced elsewhere in the UK could reverse the country’s economic recovery if slapped on London venues.

It predicted that new lockdown restrictions would decimate a return to health for Britain’s pubs and restaurants, and would likely dent the British economy by more than £250m a day.

The CEBR added that new restrictions could cause GDP to sink between three and five per cent in the final three months of the year compared with the third quarter, when the UK economy plummeted to its deepest recession on record.

The think tank said that though a full second national lockdown is unlikely, partial lockdowns may eradicate progress in the hospitality sector brought about by chancellor Rishi Sunak’s Eat Out To Help Out scheme.

The scheme, which offered diners half price meals from Monday to Wednesday during August, helped shrink UK inflation to 0.2 per cent after providing more than 100,000 discount meals last month.

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Douglas McWilliams, deputy chairman of the CEBR, said that a second national lockdown could “knock the stuffing out of consumer and business confidence”, causing widespread business collapse and unemployment.

“Whereas the first lockdown was bearable on the assumption that it was temporary, a second lockdown will make many people lose confidence in a recovery in the foreseeable future,” he added.

McWilliams said the winding down of the furlough scheme — which sees the UK government pay a portion of workers’ salaries — may also result in wide scale job losses.

“Tens of thousands of businesses are hanging on by a thread and likely to run out of cash,” he said.

It comes as London mayor Sadiq Khan over the weekend warned that the capital is only “two or three days behind” coronavirus hotspots in the north of England.

More than 10m people across the UK are currently living with tougher restrictions as the government attempts to clamp down on a new bout of infections sweeping the country.

Khan said it is “increasingly likely” that lockdown restrictions will soon be introduced in London, adding that it was his “firm view” that action should be taken sooner rather than later.

By Poppy Wood

Source: City AM

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BTL repossessions threaten to drive UK housing into deeper crisis

The government needs to address BTL regulation quickly to avoid a worsening housing crisis fuelled by buy-to-let repossessions.

According to property litigation lawyer, Mary Rouse, from law firm Wright Hassall, thousands of buy-to-let landlords will themselves face possession action by their lenders if temporary legislation is not revoked allowing them to evict tenants who are in breach of their tenancy through anti-social behaviour, domestic violence or large debt accrued before Covid.

Many landlords are currently under increasing pressure from their lenders to start making repayments on their buy-to-let mortgages, despite Government imposed temporary legislation preventing them from acting upon non-payment of rent.

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Under the present rules, families could be made homeless and with fewer properties available to rent, buy-to-let landlords could either lose their properties to their lenders or sell up.

Recent amendments to legislation include a one-month extension to the blanket ban on evictions, until 20 September 2020, while the amount of notice that a landlord has to give their tenant has been doubled from three months to six months until at least March 2021.

Rouse had this to say: “We need legislation that treats both landlords and tenants fairly and, at the moment, this simply is not the case.

“For landlords, the risk of losing their properties to lenders, who cannot keep extending payment holidays, looms, while the uncertainty for a lot of tenants is reaching breaking point, so something has to give.

“For me, the way forward is a very clear amendment which enables landlords to progress cases where a tenancy breach is non-Covid related, i.e. antisocial behaviour, domestic violence, or where substantial arrears had accrued before Covid began.

“Equally, money must be found to cover the full rent for tenants who find themselves in difficulty as a direct consequence of Covid until they return to employment.

“Only then will we start to see some stability in the rental market – security for tenants and income for landlords.

“Without swift intervention on both fronts, we will be faced with an increase in people being made homeless and fewer private rental properties, all of which will place an impossible burden on the already creaking social housing sector.”

Source: Property Reporter