Credit, Collections & Insolvency News
The Government has announced it will extend renter eviction measures by two months. The announcement by the Housing Secretary means that millions of renters across England and Wales will receive greater protection after the government extended the suspension of new evictions until 23rd August taking the moratorium on evictions to a total of five months.
The Government also said that Ministers are also working with the judiciary, legal representatives and the advice sector on arrangements, including new rules, which will mean that courts are better able to address the need for appropriate protection of all parties, including those shielding from coronavirus. This is to ensure that judges have all the information necessary to make just decisions and that the most vulnerable tenants can get the help they need.
Where tenants do experience financial difficulties as a result of the pandemic, the government is clear that landlords and tenants should work together and exhaust all possible options – such as flexible payment plans which take into account a tenant’s individual circumstances – to ensure cases only end up in court as an absolute last resort.
Over the coming weeks, the government is taking careful steps to ease lockdown measures, alongside decisive steps already taken to unlock the housing market so people can move if they need to – for example where they may need to move for work or for family reasons.
While the government is taking unprecedented action to protect tenants and landlords during these times, the ultimate ambition is to transition out of these measures at the end of August to allow the market to operate while ensuring people have appropriate access to justice.
Housing Secretary Robert Jenrick MP said “We have provided an unprecedented package of support for renters during this pandemic. Today, I am announcing that the government’s ban on evictions will be extended for another 2 months. That takes the moratorium on evictions to a total of 5 months.”
“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 QC MP, said “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.”
The announcement builds on the radical package of measured taken during these difficult times to protect both renters and landlords affected by coronavirus, including:
Dame Gillian Guy, Chief Executive of Citizens Advice, said “Extending the pause on repossession action is important recognition from the government that many renters are facing real hardship during the coronavirus outbreak, and will give thousands of people a welcome breathing space.”
“But simply extending the pause of repossession is a sticking plaster not a cure. People who have fallen behind on rent arrears and those who have been furloughed or lost their jobs will need the security of proper reform to the rules governing evictions.”
“We look forward to working with the government in the coming weeks on changes to make sure they keep their promise, that no renter should lose their home because of coroavirus.”