According to research by LSE London and Trust for London, the number of private tenants in rent arrears in England could treble in the coming year.

This could mean that more than 700,000 tenants and their landlords may get further into financial difficulty.

Since the Government introduced its eviction ban in March last year, landlords have had limited options to remove tenants and recover rents.

The restrictions and new rules on repossession of residential properties were first introduced because of the original Coronavirus lockdown.

It was initially only intended to last three months but has now been extended several times to assist tenants who have been adversely affected by the pandemic.

In September 2020, some courts began to clear the backlog of repossession claims, starting with the most serious involving domestic violence or anti-social behaviour. A further ‘Christmas truce’ was then introduced.

Landlords were then due to start serving eviction notices from the 11 January 2021, but under pressure from tenants and charity groups, and with new COVID-19 restrictions in place, the Government extended the ban further.

Whilst there have been calls for a ban on repossessions and evictions from some groups, the National Residential Landlords Association has said the Government is making the situation worse by allowing tenant’s debts to accumulate.

This is because, despite the eviction ban, the rent on properties remains due and so millions of pounds of arrears have now built up on properties across the UK.

This has left many landlords in a difficult situation, where they not only face losing their investment properties but also their own homes, in some cases, due to being unable to cover the cost of their buy-to-let mortgages.

As with the previous bans, tenants and landlords are being asked to communicate with one another and discuss alternative arrangements. Where possible, tenants should continue to make rental payments to the best of their abilities.

If you have seen a considerable decline in your rental income due to the COVID-19 restrictions and the eviction ban then you should seek advice. We can help you to review your finances and look for opportunities to manage your costs during this difficult period. To find out more, please contact our experienced property tax specialists.