The coronavirus pandemic has had a devastating effect on the rental market, with landlords facing financial hardship as a result of rent freezes and eviction bans. On 24th February 2021, the UK government announced a three-month rent freeze and an eviction ban to help protect tenants during the pandemic. This has caused a great deal of financial difficulty for landlords, who are now unable to collect rent from their tenants.
The rent freeze has caused landlords to lose out on income, as they are unable to collect rent payments from their tenants. This has put them in a difficult position, as they are unable to cover their expenses or pay their mortgages. Furthermore, the eviction ban means that landlords are unable to evict tenants who are not paying rent, which has further exacerbated their financial difficulties.
The government has attempted to provide some financial support for landlords by introducing the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme. However, these schemes are not enough to cover the losses that landlords have incurred due to the rent freeze and eviction ban.
In order to help landlords through this difficult period, the government should consider introducing a rent relief scheme. This would allow landlords to receive financial support from the government to cover the losses they have incurred due to the rent freeze and eviction ban. Furthermore, the government should also consider introducing a mortgage holiday scheme for landlords, which would allow them to defer their mortgage payments for a period of time.
It is clear that landlords are facing financial hardship as a result of the rent freeze and eviction ban. The government must take action to ensure that landlords are able to survive this difficult period and continue providing rental accommodation for tenants. Introducing a rent relief scheme and a mortgage holiday scheme would be an effective way of helping landlords through this crisis.