The continued spread of COVID-19 and the social distancing measures that have followed in its wake quite rightly grab most of the headlines these days.
But people still own property that they live in, have tenants, and continue to manage their mortgages. So here are some of the latest snippets of news on these and related subjects.
Property owners rush to remortgage
With no early let-up of the coronavirus emergency in sight, these are uncertain and difficult times.
For anyone in enforced unemployment or reduced working hours, paying the mortgage is going to be a major worry.
That may help to explain a recent surge in remortgage applications, reported by Landlord Today on the 3rd of April, as homeowners look to secure more competitively priced deals in an attempt to reduce their monthly repayment commitments.
Favourable deals may be more plentiful since the decision by the Bank of England on the 11th of March to reduce the base lending rate from 0.75% to its lowest ever 0.25%.
Coronavirus and Universal Credit advice for landlords
On the 2nd of April, the Residential Landlords’ Association (RLA) drew attention to a guide for landlords recently published by the Department for Work and Pensions (DWP) on Universal Credit which might be claimed by some tenants.
The DWP’s newsletter reminds landlords of the application process which a tenant may need to make before receiving Universal Credit, and the special measures – including the suspension of Job Centre appointments – introduced because of the COVID-19 emergency.
The newsletter also reminds landlords of the suspension of any eviction of tenants in social or private rented accommodation for the next three months, in return for a similar buy to let mortgage repayment holiday for landlords.
The DWP has also updated the procedures through which landlords may directly receive the rent support component of a tenant’s Universal Credit payments. Such Alternative Payment Arrangements (APAs) may be granted by the DWP only if the tenant has defaulted on the whole or part of the rent due during the past two months or previously qualified for direct payment of their Housing Benefit directly to the landlord (and their circumstances have not changed since).
What should you do if you are halfway through a renovation project?
On the 2nd of April, online property listing website Rightmove relayed advice from both the government and the Federation of Master Builders (FMB) about what to do if you started a renovation project on your home before the outbreak of the current coronavirus crisis and the building works are not yet complete.
Safety first dictates the need to maintain social distancing wherever possible. That means:
- renovation work must stop in any home where the residents are self-isolating or are especially vulnerable (because of their age or underlying health conditions, for example);
- the only exception is where emergency repairs may be needed – to prevent a home from being flooded by an escape of water, for instance;
- no building work – including emergency work – should be done by a builder or tradesman who has coronavirus symptoms, however mild those may be;
- if both the resident household and the builders are all free from any coronavirus symptoms, renovation works may continue as normal; but
- the FMB has said that half of all builders have already stopped at least 75% of their commissioned work – 80% of which involves domestic renovation.
If you are a homeowner awaiting the completion of renovation work, therefore, exercise care, caution, patience and understanding before insisting that the work be done right now.
Spring has sprung – navigating property maintenance
The coronavirus emergency has not stopped the changing seasons – although it might have affected the way you approach seasonal maintenance and repairs to your let property, suggested guidance from the National Residential Landlords’ Association (NRLA) on the 2nd of April.
In essence, the advice boils down to the fact that there has been no change in your responsibilities as a landlord to maintain your let property in a good state of repair.
That means continuing to conduct the property inspections you would normally expect to make at this time of year – and arranging any necessary repairs and maintenance arising from damage during the winter.
But the necessary inspections and works must also be balanced against the need to keep you, your tenants and the relevant tradesmen safe from exposure to the virus during these times of social distancing and self-isolation by affected or vulnerable members of the population.
