More joy for landlords

[Clitheroekid]

Anyone who's a private landlord needs to be aware of yet another obstacle to pursuing defaulting tenants, this time in the form of the snappily entitled Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.

Essentially, these enable a private individual or non-VAT registered sole trader to stall any action by their creditors for 60 days (the `Breathing Space') to enable them to obtain debt advice. If they are receiving treatment for a `mental health crisis' they can stall action until 30 days after the treatment stops.

As the linked article makes clear, if a landlord is notified that one of their tenants has the benefit of a Breathing Space, they (or their agent) must not under any circumstances contact the debtor for the purpose of enforcement of any paused debt.

Like most consumer protection legislation it's well-intentioned, and will no doubt in some cases serve a useful purpose. However, like all such legislation it's likely to be abused by dodgy tenants. It's all too easy for them to go to their GP claiming to be suffering from anxiety / depression / other mental illness and get certified as suffering from a mental health crisis. GP's are notoriously reluctant to refuse such a request, as it's far easier for them to give the patient the benefit of the doubt than argue with them.

This could mean that it's effectively impossible for a landlord to take - or even threaten - any enforcement action for an indefinite period, and emphasises even more the desirability of obtaining a guarantee from a property-owning guarantor.

More information here - https://www.lexology.com/library/detail ... &utm_term=

[didds]

purely out if interest... what if the property owning gaurantor end up certified as suffering from a mental health crisis? Does the same legislation apply then also?

didds

[Lootman]

I have long held the view that the only real reason that many tenants pay their rent in full and on time, is that the eviction process is speedy and effective if they do not. Take that remedy away, as this provision does along with various eviction amnesties because of Covid, and it's really just a license for tenants to default.

The heyday of landlording was the 1980s and 1990s, after Thatcher deregulated the business, and the inventory and quality of rental housing increased rapidly. But even by 2000 new layers of regulations were being implemented that made landlording less attractive. I saw the writing on the wall and between 2003 and 2010 I offloaded all my housing units. It has only got worse since then with various tax changes that demotivate the provision of housing.

The real killer, which has been discussed in some circles, would be rent control, including a ban on no-fault evictions. That really would signal the end of the business. If I had any units now, I would just do Airbnb or short-term corporate lets. Landlords can adapt or invest in other areas. The real loser from all these protections ironically are the tenants themselves, as the inventory of homes for rent dwindles.

[MrFoolish]

The real loser from all these protections ironically are the tenants themselves, as the inventory of homes for rent dwindles.

But the total number of homes remains the same. If there are fewer homes to rent, there will be more homes for young people to buy. Swings and roundabouts.

[Lootman]

The real loser from all these protections ironically are the tenants themselves, as the inventory of homes for rent dwindles.

But the total number of homes remains the same. If there are fewer homes to rent, there will be more homes for young people to buy. Swings and roundabouts.

Not necessarily. It depends what owners do with the properties they no longer want to rent out.

They might just do a different kind of rent, as the huge growth in Airbnb rentals has shown. They might do a change of use, which I did a couple of times, renting to businesses instead. They might just leave them vacant and use the tax loss to offset other profitable rentals.

And even if those properties are sold, they may still be beyond the means of the average renter.

[Spet0789]

The real loser from all these protections ironically are the tenants themselves, as the inventory of homes for rent dwindles.

But the total number of homes remains the same. If there are fewer homes to rent, there will be more homes for young people to buy. Swings and roundabouts.

This!

The politics of protecting boomers who have boarded property wealth at the expense of working age strivers are horrible. Even the Conservatives are happy to take up arms against the landlords. I, for one, think they’re right to do it.

[AleisterCrowley]

I have long held the view that the only real reason that many tenants pay their rent in full and on time, is that the eviction process is speedy and effective if they do not. ...

Well in my case it because;
(a) I'm basically honest
(b) I wish to maintain a good working relationship with my landlord

[Lootman]

I have long held the view that the only real reason that many tenants pay their rent in full and on time, is that the eviction process is speedy and effective if they do not. ...

Well in my case it because;
(a) I'm basically honest
(b) I wish to maintain a good working relationship with my landlord

Yes, and in fact the vast majority of tenants I had in my 30 plus years of landlording were like you. The idea that landlords and tenants hate each other, or are taking advantage of each other, is predominantly a myth. There are a few bad apples on both sides who make a lot of these regulations necessary whereas most people are reasonable and get along.

In fact I never had a default on the rent, and only ever evicted a handful of tenants, out of over a hundred that I had.

But there will always be a minority who see the landlord/tenant relationship as evil or some kind of class war. The provision of housing services is a valuable and vital services, and should be held in esteem by society rather than vilified. If the environment for lettings becomes ever more toxic and punitive, then the "nice" mom-and-pop landlords will quit, and it will just be corporations that run rentals, and those guys are not nice at all.

[AsleepInYorkshire]

Anyone who's a private landlord needs to be aware of yet another obstacle to pursuing defaulting tenants, this time in the form of the snappily entitled Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.

Essentially, these enable a private individual or non-VAT registered sole trader to stall any action by their creditors for 60 days (the `Breathing Space') to enable them to obtain debt advice. If they are receiving treatment for a `mental health crisis' they can stall action until 30 days after the treatment stops.

As the linked article makes clear, if a landlord is notified that one of their tenants has the benefit of a Breathing Space, they (or their agent) must not under any circumstances contact the debtor for the purpose of enforcement of any paused debt.

Like most consumer protection legislation it's well-intentioned, and will no doubt in some cases serve a useful purpose. However, like all such legislation it's likely to be abused by dodgy tenants. It's all too easy for them to go to their GP claiming to be suffering from anxiety / depression / other mental illness and get certified as suffering from a mental health crisis. GP's are notoriously reluctant to refuse such a request, as it's far easier for them to give the patient the benefit of the doubt than argue with them.

This could mean that it's effectively impossible for a landlord to take - or even threaten - any enforcement action for an indefinite period, and emphasises even more the desirability of obtaining a guarantee from a property-owning guarantor.

More information here - https://www.lexology.com/library/detail ... &utm_term=

May I raise a small point please? I'm not sure a mental health crisis is a free for all get out clause for anyone who has anxiety or depression. I wonder if it refers to those who (like me in 2014) have got to a point where they cannot continue with their life or are self harming or psychotic and not only a danger to themselves but others. I don't think this refers to just having clinical depression but more a complete breakdown of well being to a point that they need support to move forward. I would hasten to add that anyone who feigns any mental illness will ultimately put themselves in a position where the law may come down adversely upon them.

If GP's are reluctant to diagnose mental health conditions why did it take 21 years for me to obtain a diagnosis of clinical depression? And when I did why did it take another 16 years before they decided that the depression and other symptoms were caused by a sleep disorder? A referral to a Mental Health Crisis Team isn't regarded lightly as I understand it and isn't something a GP wouldn't do by default.

AiY

[Gerry557]

Yes I can see where this could be used as a get out of jail free card. I suppose it a balance between rights for landlords and tenants.

Could someone stop paying the rent for a decade with the help of a doctor? I remember when DSS payments were changed from direct to landlord to the tenant. It was to give them responsibility and experience managing their money. Again, well intentioned but sometimes abused. Some tenants, a minority, would take the money for months, not pay the rent, finally get evicted. Landlord loses out, local council then have obligation to rehouse, costing even more money and the cycle continues.

There are some bad landlords too or properties that are dangerous or over crowded.

Hopefully this will find its real balance. Is there going to be a corresponding version for the mental health of landlords who have anxiety from nit getting paid?

[chas49]

Moderator Message:
Most of the discussion on this topic is now off-topic for Legal Issues - Practical. This is not the place for political/policy discussion. Please do not continue this here. (chas49)