Evictions ban extended until May

The Ministry of Housing, Communities and Local Government (MHCLG) has announced that it is suspending bailiff-led rental evictions until 31st May.

The temporary law requiring landlords to give tenants 6 months’ notice before they can evict has also been extended for the same period. The ban on commercial evictions has also been extended to 30th June.

The Government says that with around 49% of hospitality workers and 36% of retail workers currently renting, the new measures will protect jobs as businesses reopen and many more renters can return to work. Whilst the business evictions extension will help those worst affected by the pandemic, such as bars and restaurants, get back to business in May when doors fully reopen for hospitality no earlier than 17 May.

Housing Secretary, Rt Hon Robert Jenrick MP said “It is right that as we move through the roadmap, we ensure that businesses and renters continue to be supported. We have taken unprecedented action to support both commercial and residential tenants throughout the pandemic – with a £280 billion economic package to keep businesses running and people in jobs and able to meet their outgoings, such as rent.”

Business Secretary, Rt Hon Kwasi Kwarteng MP said “We’re doing everything we can to ensure businesses get the support they need to get through this pandemic and reopen when it is safe to do so.  know business owners will welcome this latest package of support and the breathing space it will give them to prepare for a safe reopening, and, ultimately, to build back better.”

“Throughout the pandemic, the government has put in place an unprecedented £280 billion package to support businesses and keep people in work and able to meet their rent and other outgoings and the confirmed 6-month extension to the furlough scheme and Universal Credit uplift will continue to provide financial security for millions.”

Responding to the extension Richard Lane, StepChange Director of External Affairs, said “The Government’s continued suspension of rental evictions until the end of May is a welcome step which will gives renters affected by the pandemic vital time to get back on their feet. However, renters are among the groups hit hardest by the pandemic, and many of those struggling have fallen well behind on their rent orresorted to borrowing to get by. With wider restrictions due to continue until at least the end of June and the economic effect of the pandemic expected to go on well beyond that, renters have little hope of a return to anything like normal by May.”

“Without targeted financial support, many renters are at risk of losing their homes. We need urgent action to prevent homelessness, housing insecurity and long-term problem debt from taking hold when the newly extended suspension is lifted.”

“That’s why StepChange is calling for an emergency financial package from the Government that helps people deal with their rent arrears through a system of grants and no-interest loans. We’ve seen the Governments in Wales and Scotland make a start on tenancy saver schemes for renters – now the UK Government must follow suit by rolling out an improved version of support in England while providing devolved administrations with the resources needed to fully support renters.”

Responding to the announcement Melanie Leech, Chief Executive, British Property Federation said “The Government has acknowledged that the majority of tenants and property owners are working well together – with tenants being transparent about their finances, and property owners supporting those in distress with emergency relief and new, longer-term rent payment arrangements. New, stronger relationships have been built through this process. Nevertheless, there is a minority where relationships have broken down and become toxic, and the continuation of the moratorium will do nothing to unlock the stalemate and allow the market to re-set and recover.”

“With further rates relief and new grants, and a clear plan for re-opening, high streets businesses should be confident in approaching their property owners to forge an economic partnership in which they can agree how to manage rental debt fairly. Rational property owners want their tenants to thrive  – empty properties generate no income and are a blight on our high streets.

“As they prepare to re-open, in premises which property owners and their agents have kept safe and well-maintained, the scandal of those well-capitalised businesses who can pay rent, but have chosen not to, cannot be allowed to continue. Their behaviour has raided our nation’s pensions and savings invested in commercial property, and has been a heavy blow for already stretched local authority landlords and public finances.”