The Independent reported yesterday that:
The government has been urged to freeze rent for people who can't work and are struggling to pay their bills during the coronavirus pandemic.
A petition calling for a “rent holiday” and to protect tenants from the threat of eviction has gathered more than 3,000 signatures, piling pressure on the housing secretary Robert Jenrick to act.
It would seem that work I have done on this blog has influenced this. As they note:
Richard Murphy, a chartered accountant and campaigner who runs Tax Research UK, believes any private renters who contract coronavirus should be able to live rent-free for up to three months.
He wrote in a recent blog post: “Far too many people have too few savings to survive major periods of economic inactivity without massive prejudice to their short-term and long-term wellbeing.”
“Should the epidemic spread then as a matter of statutory right any tenant should be provided with a minimum three-month rent-free period to ease the stress upon them whilst this crisis lasts.”
“I would suggest that the grant of that extension should be automatic to anyone who does not make a due payment of rent on the required date during the period of the epidemic. They should be automatically granted this extension by the landlord without having to make any further application or to complete any additional paperwork.”
I stand by that.
The paper notes that the government does not seem to agree. But that's all part of their strategy for making this as bad as possible.
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Excellent post. I have signed the petition mentioned above.
‘Tis a pity that we have a bunch of disaster capitalists at the helm. Coronavirus is just another means by which to increase their wealth or achieve their malign objectives. The problem is that they just can’t help themselves – or us for that matter.
Agreed
Disaster capitalism only works if the majority of the population isn’t affected by the disaster. This time, so many people are going to be on the sharp end of any economic melt down that the government will be under huge pressure from all angles.
“But that’s all part of their strategy for making this as bad as possible”
You really are dogmatic. The Government will help those in need but not for another section of society to pick up the bill. I am retired but i don’t qualify for state pension so live off rental income. I rent my property to a couple in their early 30s. One is a management consultant at Accenture and the other a Teacher. Between them their income dwarfs mine and they will I’m sure get full pay if they need to isolate…and you want me to give them a rent holiday? Completely barmy..
And your inability to think beyond your personal situation and experience is evidence as to precisely why you should not be listened to
That isn’t true..besides my situation will be mirrored by many as many young professionals rent and have miles more disposable income than those they rent from. Clearly you despise the concept of landlords and want to use the coronavirus as a stick to beat them with. I am 100% certain the Govt will ensure families are not turfed out on the street though not being able to work inspite of your claim “its all part of their strategy for making this as bad as possible”..
Phil
Stop suggesting things about me that are untrue
Now, politely, go away
Richard
Does a rent holiday apply in the case where renters are still able to work and or on full pay? I suggest that in the case of the management consultant above that would be very possible without ever having to come in to contact with others.
Those in other industries that rely on hospitality and events which are likely to be cancelled and where they only get paid if events happen are in a very different situation. They are unlikely to get any government assistance as the majority are not employees and neither will they get anything from those who would have contracted them. Many of them are not even entitled to JSA being classed as self employed businesses. Without a rent free period many will also become homeless.
The point is there will be no one to do the admin
The moral hazard cost is the smallest problem
So it needs to be accepted
“The moral hazard cost is the smallest problem”
Really when the headlines in the Daily Mail reads “pensioners cant make ends meet as they give rent free accommodation to young professionals working at Goldman Sachs (or names to that effect)”..if the Govt can extend sick pay to small companies then they will have to also offer support to the self employed. To do some online form filling to show tenants are not receiving pay from employers during a period off work is relatively trivial and overcomes the exceptionally large problem of moral hazard.
Ray, you really do need to think a little
This must be the first ever petition I have signed that has had any influence whatsoever. I was on the point of giving up much hope for any sort of lobbying to improve the state of things.
While I wont entirely dismiss Phils point, it seems to me that
1. A very high percentage of tenants will be adversely affected by the Coronavirus outbreak
2. Sorting out those who are not will be disproportionately expensive, and
3. If a general ‘Mortgage Holiday’ is declared many landlords will benefit.
4. I hope however that those whose income has not been affected – on both sides of the equation might be good enough to voluntarily not take advantage of the scheme
Undoubtedly it will include an element of ‘Rough Justice’ but – and I work in Housing Benefit so I know of what I speak, I suggest that any alternatives would be complex and difficult to administer at a time when we need speed and have a lack of resources to administer alternatives.
Some interesting news from southern California, sent in by Mark Elliot of the Beverley Hills Renters Alliance, which advocates for renters.
He says the mayor of Los Angeles, Eric Garcetti, has made an executive order to halt residential evictions for non-payment of rent. Writes Elliot:
There is no official order posted yet; the measure was announced by the mayor with other emergency measures but arguably is among the most significant.
Santa Monica has also imposed a similar measure, details of which were published on the city’s website. Elliot adds:
The California state legislature is also reportedly considering a moratorium on evictions statewide, which follows the recent adoption of rent control statewide (in most areas). This proposal, to be introduced by Phil Ting (who has backed many rent control measures) may struggle to find the super-majority support necessary.