The government is asking bailiffs not to enforce court possession orders in areas with the highest Coronavirus restrictions.
So although evictions can still proceed through the courts, bailiffs will not enforce court orders in Tier 2 and 3 areas - currently London, Greater Manchester, Merseyside, Wales and much of the north east of England.
Bailiff trade bodies have agreed to a request made by Justice Secretary Robert Buckland who at the end of last week wrote: “We would request that your members should instruct the enforcement agents working under their authorisation not to enter properties that are classified as local alert level 2 (high) or 3 (very high)."
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This will disappoint but cant be seen as a surprise.
Shall we run a sweep stake on when rent controls will come in?
You could regard the eviction ban as an effective rent control.
Certainly with hundreds of thousands of tenants not paying their rent and with no intention to ever pay the arrears these feckless tenants have very effectively controlled their rent.
Yep we are nearly back to the days of the sitting tenant.
Official rent control is as you suggest what will be the final piece to return the letting sector to the days of before the AST and the BTL mortgage.
Such inevitable rent controls will finally kill the leveraged LL.
Leveraged LL should recognise the salad days are over.
As a matter of urgency they need to deleverage to an amount which UC could afford the property mortgage and other costs.
That could mean reducing to 20% LTV.
But clearly the direction of travel is obvious even from the perspective of political expediency.
Rent controls would be an easy political win at a time when this Govt is winning little.
Dopey tenants only live in the now.
They won't even consider the effects on the overall PRS in years to come.
It takes time for LL to reduce or liquidate their property assets.
As such it will take years before the full detrimental effects of rent control are obvious.
But we are talking about at least 2 Parliaments before that is the case.
So LL considering their position should do so sooner than later.
Lenders in particular will take fright as with fewer LL able to leverage property values will reduce.
Not good prospects at all.
They don’t need to ban section 21 now they have virtually stopped all evictions using covid .. leaving thousands of landlords to carry non paying tenants.
This will backfire big time as many landlords will sell up as soon as they do eventually get possession and new landlords would be daft to enter this market with such risks
I notice that this was a REQUEST from Buckland, yet the High Court Enforcement Officers Association immediately rolled over and agreed.
MORE misery for landlords with tenants in arrears.
MORE misery for landlords with tenants damaging their property.
MORE misery for decent citizens with tenant neighbours comitting ASB.
NOT a way to make friends and get votes!
In business speak, they call this "Consensus Management". In laymans terms, that means - we can make it look like you are an important decision maker in the process, provided you agree to all our our requests and don't make any trouble, so we don't then need to make you do it anyway under duress. It took Andy Burnham 10 days to work this out.
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