Government publishes advice for landlords and tenants during the coronavirus crisis

The Government published ‘COVID-19 and renting: guidance for landlords, tenants and local authorities’ on 28 March 2020.

This guidance gives details of measures to help renters during the current coronavirus crisis. It clarifies the proposals, which the Government announced previously, for a temporary ban on evictions.

If you are a landlord, you may be worried about what will happen if your tenant fails to pay the rent and you cannot get your property back.

Firstly, the guidance stresses that tenants should continue to pay their rent where they can and to discuss any problems with their landlord. Your tenant will still be liable for the rent during their occupancy and, if they are struggling financially because of the crisis, the possibility of missed payments and default increases; So, it therefore makes sense to address any issues proactively. This could involve agreeing a temporary lower level of rent or a plan for paying off arrears later.

Secondly, the guidance explains the effect of the new Coronavirus Act 2020 on possession proceedings. The Act stops short of a total eviction ban. Instead, it increases the period of notice a landlord must give to recover possession of property under most types of tenancy to three months. If the Government considers it necessary, this could be increased to six months in the future.

The Act does not prevent you serving either an S8 or S21 notice although both forms have been amended to make it clear that tenants are entitled to at least three months’ notice before a landlord is able to apply to the court for a possession order. Any proceedings issued will be stayed for a period of 90 days. This means that neither cases currently in the system or any about to go into it can progress to the stage where someone could be evicted. the guidance strongly advises landlords against commencing or continuing eviction proceedings during the current crisis.

The fall-out from the coronavirus crisis is affecting both landlords and tenants in unprecedented ways, and there may well be further changes in the forthcoming months. You can, however, reduce the risks by keeping up to date with developments and discussing any potential issues with your solicitor early on.

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