On 21 August 2020, ministers have agreed in a last minute decision to extend the ban for evicting residential tenants in England and Wales by four weeks, taking the ban until the 20 September 2020.
Residential tenants have been protected throughout the COVID-19 crisis by a moratorium of eviction that was due to end on Sunday 23 August 2020. Landlords will also be required to provide a six months’ notice for eviction rather than the current three months, until March 2021.
While the government may be trying to protect against a rise in tenant evictions as over 200,000 have fallen into arrears, a balance should still be struck in order to protect the landlords.
Arguably, this decision comes at the expense of landlords who do not have the means to collect the rent that they are owed, with many landlords needing this to live off or pay bank interest.
A happy medium is therefore tough to find. It may be that the government is hoping this is the last extension of the ban in an attempt to be fair to landlords whilst ensuring most tenants and landlords can come to an agreement on the rent owed, without the need for court proceedings.
The moratorium on commercial tenant evictions is due to be lifted at the end of September.
For more information on how this might affect you, please contact Stacy Eden or your usual Crowe contact.