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ARLA Propertymark Demands Further Support for Rental Sector Amid Covid-19 Pandemic

R
Rent Guarantor May 18, 2020

The UK government has proven a supportive one in the face of the unprecedented health crisis that is coronavirus. However, while Prime Minister Boris Johnson and his cabinet have implemented a number of welcome measures to support the UK's rental sector, there is still more that can be done. In a submission to a Government inquiry, ARLA Propertymark has issued a number of additional demands of support. They include issues relating to tenants. landlords and letting agents during the ongoing difficulties.

The industry group acknowledges the Governments supportive efforts so far. However, as the leadership of the UK has offered an opportunity for comments and opinions as to what else could be done, ARLA Propertymark has taken that chance and submitted a detailed plan of action it believes would provide further support during this extended period of difficulty and uncertainty.

Further Action Still Required

Existing support has been well thought out and helpful. However, self-employed letting agents still need some help as they have fallen between a number of different options, missing out on much need financial assistance. This is not limited to the lettings industry and the suggestions from ARLA Propertymark could work elsewhere too.

The industry body suggests the Government asks company directors to self-report their average dividend income. This could be a reliable way to calculate a similar measure of support to the 80% of income that other self-employed and PAYE workers are able to access.

Looking towards tenants, ARLA identified that the government can do more still to ensure all of the details of its guidance during the pandemic are fully understood by renters who may be struggling to pay their rent due to being furloughed or made unemployed.

“Not enough is being done to explain and highlight these policies. In order that rent payments continue to be paid and the Government keep the rent flowing, renters and their landlords need to take full advantage of the Government schemes available during this difficult period,” ARLA Propertymark said.

The industry body also states the government should suspend the incoming mandatory electrical checks. This would help keep tenants safe from letting someone into their home and also provide some support for the maintenance industry which is experiencing capacity and supply-chain issues. Meanwhile, updated guidance on mandatory gas safety checks would also be welcome.

Post lockdown guidance

As tentative steps are being taken to very slowly ease out of the lockdown measures and begin to re-open the economy, it’s also important to look ahead to the lettings market in a post lockdown environment.

With that in mind, ARLA has identified three key issues that would prove supportive for both tenants and landlords:

  • Provide more support on rent payments, from sharing information to getting benefits paid directly to landlords.
  • Press pause on the introduction of all new licensing schemes.
  • Where tenants are in arrears, separate those arrears from before the pandemic lockdown measures and during quarantine. 

It’s likely further guidance for the rental sector from the government will be forthcoming at some point in the near future. Exactly how more well developed and helpful it will be, however, is as yet unknown, but there is hope of a sensible approach to the future for the UK’s essential lettings industry.

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