Government extends eviction ban - Mortgage Strategy

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The government is extending the ban on evictions in England and Wales by a further two months to 23 August.

The move will take the total moratorium on evictions for private and social tenants up to five months.

The government says that where renters are in financial difficulty as a result of the pandemic, landlords and tenants should work together and exhaust all possible options, including flexible payment plans to ensure that court action is a last resort.

Housing secretary Robert Jenrick says: “We have provided an unprecedented package of support for renters during this pandemic. 

“Eviction hearings will not be heard in courts until the end of August and no-one will be evicted from their home this summer due to coronavirus.

“We are also working with the judiciary on proposals to ensure that when evictions proceedings do recommence, arrangements, including rules, are in place to assist the court in giving appropriate protections for those who have been particularly affected by coronavirus – including those tenants who have been shielding.

Lord chancellor and secretary of state for justice Robert Buckland adds: “Protecting vulnerable people has been our priority throughout this pandemic. 

“Extending this ban will give people invaluable security in these turbulent times and work continues at pace to ensure vulnerable renters remain protected long after the ban ends.”

Alternative deposit scheme Ome’s co-founder Matthew Hooker says: “Tenants and landlords alike are currently in a very tough spot. 

“The Government has provided both tenants and landlords with some initial respite in the form of no evictions and mortgage holidays, however, this is only a temporary fix to a problem that isn’t going to go away any time soon.  

“Landlords will still be required to pay the outstanding amount owed on their mortgage at a later date and tenants are still legally obliged to pay the rent owed.

“The reality is, that many remain unable to do so and this presents long-term financial implications with many facing long periods of rent arrears payments in order to clear their balance sheet.  

“There is also a very real danger that many landlords may well decide to cut their losses once the eviction ban is lifted and look for a tenant less impacted by covid-19 so they can at least pull in some rental income going forward, but with huge backlogs of evictions already building this could also prove a painfully slow process.”

 


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