Adam King quoted in Telegraph article about the impact of the pandemic on residential landlords
Property litigation partner Adam King is quoted in an article in The Telegraph entitled ‘Five reasons why the pandemic's impact on landlords is only getting worse’, saying Government support is not enough to help higher-earning tenants.
"There's a seven or eight month backlog of cases and probably substantially more new ones," said Mr King. "People are incredibly frustrated."
An article in The Telegraph under the headline 'Five reasons why the pandemic's impact on landlords is only getting worse' says the numbers of landlords under financial pressure to sell up has doubled compared to last year. The article states that between 5% and 6% of tenants have defaulted on rent payments since the pandemic started.
The article quotes Adam as saying said that although furlough is insulating many tenants, in central London, the government support (which is capped at £2,500 per month) is not necessarily enough to help higher-earning tenants cover their outgoings. Some problem tenants have been professionals with well-paid jobs who have demanded major rent cuts rather than terminate the contracts they can no longer afford.
The article continues: "Mr King added that despite the relative safety net of furlough across the country, the situation was creating tensions. 'Landlords feel that some tenants are taking advantage and have a sense of entitlement.' Tenants in arrears fall into two camps, he added. There are those who have genuinely been adversely affected, and those where even when the landlord has offered reductions, the tenant has simply refused to pay 'because they know there's not a huge amount that the landlord can do'."
The article discusses the fact that in August, the Government introduced a six-month notice period for eviction of tenants. The article states that in addition to this, many proceedings are beset by delays and quotes Adam again: "'There's a seven or eight month backlog of cases and probably substantially more new ones," said Mr King. 'People are incredibly frustrated.'"
You can read the full article here (subscription required).
If you have any queries regarding a landlord and tenant matter, you can contact Adam at [email protected].