A trade body has stated that it is more than likely many buy-to-let landlords could have to suffer up to two years without having any rent paid due to the government’s changing in regulations for Section 21 notices and the extension of the ban.

@evfoto via Twenty20

Those tenants who are unable to pay their rent because of the pandemic have been protected by the government with its extension of the evictions’ ban and changes to Section 21 processes and forms.

Tenants are required to pay their rent and some may have to face several months of rental arrears' payments.

A trade body has recently written to Boris Johnson urging that the government must act now to prevent the situation worsening further for landlords, especially as they are expected to continue providing housing for tenants who have not paid their rent for six months and more; this then coupled with the eviction process for a further six months at least will take the debt up to more than a year’s worth of rental arrears.

From the English Housing Survey’s findings the average weekly rate of rent is in the region of £200 which means that a landlord could lose as much as £20,800 over two years.

In the letter it was also pointed out to the Prime Minister that 94% of BTL landlords are private individuals with one or two rentable properties and will be extremely difficult to carry on for one to two years without any rental income.

The trade body also warned Johnson that due the government’s lack of financial assistance for the PRS during the Covid-19 pandemic, there will be many landlords who will have no other recourse than to lodge money claims against tenants resulting in their credit scores left in tatters.

The trade body urges the government to give tenants the opportunity of applying for government guaranteed hardship loans (interest free) to pay off pandemic related rental arrears; this should help stem expected the tidal wave of evictions following the lifting of the furlough scheme.

It has also called for the government to guarantee that there will be no further extensions to the eviction ban.

The spokesperson for the trade body, commented: “The overwhelming majority of landlords have been working constructively with their tenants to sustain tenancies where rent arrears have built as a direct result of the pandemic.

“The government’s actions are a kick in the teeth for all these landlords who have done the right thing.

“Ministers must use the next four weeks to come up with a credible plan that pays off rent arrears built due to the pandemic and gets the courts hearing cases again.

“Stopping landlords from legally ending failed and disruptive tenancies is not a solution. The government must act to cover the costs of providing homes; they cannot expect landlords to foot the bill for their failure to support households.