The Ministry for Housing, Communities and Local Government has released a new 21-page report entitled: Coronavirus (COVID-19) Guidance for Landlords and Tenants.
It offers non-statutory guidance for landlords and tenants in the private and social rented sectors. Below is a brief summary of the key points.
Rent, mortgage payments and notices seeking possession
The purpose of the advisory guidance is to help landlords and tenants understand the implications of the Coronavirus Act 2020. The Act will mean that, until 30 September 2020, most landlords will not be able to start possession proceedings unless they have given their tenants three months’ notice.
As well as the provisions in the Act, the Master of the Rolls, with the agreement of the Lord Chancellor, has announced the suspension of housing possession cases in the courts – this affects new or existing claims for possession for a 90 day period from 27 March. The report states: “We strongly advise landlords not to commence new notices seeking possession during this challenging time without a very good reason to do so. It is essential that we work together in these unprecedented circumstances to keep each other safe.”
Tenants should continue to pay rent and abide by all other terms of their tenancy agreement to the best of their ability. The government has a strong package of financial support available to tenants and where they can pay the rent as normal, they should do. Tenants who are unable to do so should speak to their landlord at the earliest opportunity.
The report adds: “An early conversation between landlord and tenant can help both parties to agree a plan if tenants are struggling to pay their rent. This can include reaching a temporary agreement not to seek possession action for a period of time and instead accept a lower level of rent, or agree a plan to pay off arrears at a later date.”
Mortgage lenders have agreed to offer payment holidays of up to three months where this is needed due to Coronavirus-related hardship, including for buy-to-let mortgages. The sum owed remains and mortgages continue to accrue interest during this period.
