More than a third of furloughed private renters are worried about being able to pay their rent when the Coronavirus Job Retention Scheme ends, according to new research published recently by think tank, the Joseph Rowntree Foundation.
The research, based on a sample of 1,031 private renters in a YouGov survey of 6,430 UK adults, demonstrates what the foundation calls “the precarious situation faced by many households who are renting privately.”
The government recently temporarily increased the amount of support private renters can get for their housing costs, known as Local Housing Allowance (LHA) up to the cheapest 30 per cent of local market rents. In the ABC Council area this is currently at £102.00 per week (up from £92.11 per week) for a 3-bedroom property.
This increase will be a small help to people in the short-term, but job losses are forecast to be at a record high, with the worst expected to be once the furlough scheme ends which will lead to tenants going into arrears while they navigate through the benefits system.
The current situation landlords in Craigavon, Lurgan and Portadown find themselves in isn’t pretty…
- In Northern Ireland there is approximately 210,000 people on furlough
- Tenants who fail to pay rent cannot be evicted due to the adjournment of all but urgent matters coming before the Courts here, including most housing possession claims.
- When the Courts do finally reopen there will be a huge back log for possession hearings.
- The Bank of England has warned we are facing the worst financial recession for 300 years.
Being a Landlord myself during the last recession I know the importance of protecting your rental income, especially if you have a mortgage attached to the property. So, I have been spending my time during lockdown researching the different ways you can do just that and am pleased to confirm that we now have a new product that will give you peace of mind knowing that your rent is protected, and you will not be out of pocket – I call it Ultimate Let.
Our new Ultimate Let service combines everything our Full Management service provides with the guarantee that 100% of the rent will be paid for six months or until vacant possession is gained, whichever is sooner. Plus, it will cover the full legal costs to obtain possession of the property if the tenant fails to pay the rent, with Court attendance included as part of the service.
In a period where finances are unstable, and unemployment becomes a common issue, the idea of taking out rent protection is quickly proving to be an appealing option amongst the landlord community. Even if your tenants have undergone the most rigorous of referencing checks, in this time of economic uncertainty anything could happen – such as a tenant being made redundant, which in turn affects their ability to pay their rent on time.
If you would like to find out more about gaining some peace of mind during these uncertain times click here, or you can give me a call to discuss the benefits of our new service – I’d love to hear from you!
