Emailed in by Lola, from The Telegraph:
Landlords, shops and restaurants have joined forces to ask the Government to step in and pay commercial rents to help them survive the coronavirus pandemic.
Trade bodies have been in talks with ministers about proposals that would see the Government fund up to 50pc of rent and services charges owed by businesses in the retail, hospitality and leisure sectors. These “Property Bounce Back” grants would be targeted at businesses worst affected by lockdown.
It is estimated that about £3bn of rent owed to commercial property landlords for the six months to September will not have been paid, laying bare the acute pressures faced by landlords and tenants.
His comment was "Aaarrghh!" Not much I can add to that.
-----------------------------------------------
Spotted by Mombers at HPC, a question at Property118:
Reluctant landlord (wot?): I note that the LHA rates have been increased from 1st April 2020 – March 2021. A couple of questions…
2. Are any landlords now upping their rents in light of this LHA increase going forward?
PT: If like me, you have tenants on LHA rates, which previously was on average 20-30% below private rental rates, then I see no harm in increasing the rents where the increase will be picked up by the benefit system... It also brings the rents inline with what the property should rent for.
WP: Just thought of another question - if a rent increase will not effect the tenant at all in regard to any top ups (they currently do not pay anyway) - can I notify HB/DWP myself direct? If it is not for the benefit of my tenants, asking them to contact the department about the rent increase will fall on deaf ears....
TBH adds "If you ever needed reassurance that we are on the right side, this thread is ideal." Again, there's not much I can add to that.
Thursday, 13 August 2020
We own land, give us money!
Subscribe to:
Post Comments (Atom)
13 comments:
TBH?
JH, those are his initials.
Off topic; not quite sure this belongs here, but...
https://www.reddit.com/r/SweatyPalms/comments/i7kruj/rhino_rampaging_on_a_road_in_india/
BfoD, awesome video, thanks!
If someone inherits unsellable property - which they still have to pay council tax for - would that be a reluctant landlord?
Of course if you can rent it, you should be able to sell it, unless it is going to fall in the sea in the next 10 years.
I would imagine that almost never happens but it might do.
Just like maybe one day someone might hit 5 holes in one in a row.
LF, "Of course if you can rent it, you should be able to sell it, unless it is going to fall in the sea in the next 10 years"
Exactly. You can even sell a house that is going to fall into the sea, you just have to sell it for a low price i.e. approx. remaining life x annual rent, same as a leasehold with only a few years remaining.
Perhaps a reluctant landlord is someone who is forced to travel for work and because of the cost of buying and selling property, has to rent out their property to pay council tax etc.
That would be a real case. I am sure it exists - but not many cases though.
LF, yes, if you had to work abroad for a couple of years, it would make sense to rent out your house while you're away. That's true whether there's council tax or not.
There is a more general point here (i.e. not confined to landlords and tennants) namely that in recessions (caused by a virus or by anything else) market forces work perfectly well: i.e. there's no need for govt intervention (except that govt needs to raise agregate demand).
If a debtor cannot pay a creditor, the creditor will in most cases be forced to compromise and bear some of the pain. Plus if a debtor firm looks like it's viable in the long term, nothing is gained by govt rescuing it: if it's forced into bankdruptcy, someone will pick it up at a bargain basement price and keep it going till the recovery.
I think I asked about something similar, but I can't remember the answer: why are shops and restaurants lobbying for their landlords? Because it is easier to shut landlords up with taxpayers' money than negotiate rent reduction?
RM, up to a point, yes.
PW, good question and that's probably the right answer. Also referred to as Stockholm Syndrome.
MW. If you read the comments thread under the DT article it was very encouraging. Almost universally anti the idea of helping landlords.
L, you often see that. But I've not got an account with DT so can't enjoy myself reading the comments.
Post a Comment