As we near the end of the second lockdown, how are landlords and tenants faring?
As we approach the end of a second lockdown on the 2nd December 2020 and move into a tiered system, how have landlords and tenants been impacted?
In short, an increase in rent arrears.
How bad is the problem?
On Monday 2nd November, The London School of Economics (LSE) published an article which outlined that as a result of the COVID-19 pandemic, there could be three times the current number of private tenants in rent arrears in England over the next 12 months.
For the many that have not experienced unemployment, the furlough scheme for example has proved to be successful in job retention. However, a 20% loss in income can still be highly detrimental when budgeting for bills and general costs of living.
What other options are there?
Tenants can look to claim for Discretionary Housing Payments, which is where your local council decides that you need extra help to meet your housing costs. Your local council will look at your circumstances and decide whether you are eligible and if so, how much you will be paid and for how long.
Even with the options of universal credit and Discretionary housing payments, there is still a need to be flexible and understanding towards the financial situation of your landlord or tenant.
Communication can prove to be key in these circumstances. Sometimes, a conversation regarding financial situations with your tenant/ landlord can be crucial. There are however instances where this isn’t possible or is proving to be difficult. TDS Resolution are here to help. We offer a free mediation style service where we aim to broker an agreement for a suitable rent arrears repayment plan between landlords and tenants. Involving a third party in this way can help to steer a conversation in the right direction.
If you would like to find out more, please click here or get started now using our interactive form below.