What to do if you can’t pay your rent due to Covid-19

Are you worried about your ability to pay your rent through the Covid-19 crisis? Don’t panic – you’re not alone; there are many people struggling through this complicated time with issues like job security and where their income is going to come from.

So, if you are in a position where you are worried about being able to afford your rent, it’s a great idea to be informed with as much information as possible.

Here we take a look at some practical things that you can do if you’re concerned about paying your rent through the Covid-19 crisis, as well as providing useful information on some of the relevant government schemes.

Speak to your landlord

One of the first things you should do if you are worried about your ability to pay rent is to talk to your landlord about it. Ultimately, it is in your landlord’s interest to give you the opportunity and time to pay your rent.

They may well be open to the idea of delaying your rent payment or reducing rent for a period of time – everyone understands that these are trying times.

What are your rights as a tenant?

Also, remember that a tenant you have legal rights and protections – and the government has set out specific guidance to tenants and landlords through Covid-19.

It is considered through government packages such as the furlough scheme and income support for the self-employed, most people should be able to continue paying their rent as normal no matter whether they are employed, self-employed, or using financial support such as Universal Credit.

A number of protections for tenants are set out under the Coronavirus Act 2020. It has been recommended that:

  • landlords continue to take rent as normal
  • most landlords can only evict you once they have given a three-months notice period

What if you’ve been furloughed?

Clearly some of the major reasons for worry surrounding the ability to pay rent come in the form of job security. The Covid-19 crisis has put an incredible strain on businesses across the whole of the economy, and this has made many fearful that they will lose their jobs or see their hours cut.

The government has put the Job Retention Scheme (commonly referred to as ‘furloughing’) in place. This allows members of staff to be furloughed, where the government will pay 80% of the staff member’s salary (up to £2,500 per month).

The idea here is that no business should let staff go during this time because they cannot afford to keep them – instead the government will pay their wages.

Eligibility:

Businesses will need to:

  • designate affected employees as ‘furloughed workers,’ and notify employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal

Job Retention Eligibility Source: Numeric Accounting

However, of course, there are many other factors and scenarios that could make it difficult for you to pay your rent.

What if you were let go from your job?

The furlough scheme can also cover staff who have been recently let go. The scheme allows businesses to reverse redundancies or exits from the business.

This means that you can be furloughed by the company even if the business does not intend to employ you again after the crisis is over.

If you were let go from your job either due to Covid-19 or for other reasons, it is a good idea to speak to your former employer about reversing your redundancy.

What if you are self-employed?

Freelancers and self-employed people are also facing major challenges dues to the effects of lockdown on the economy. Many have lost a significant portion (or all) of their regular work, and unlike employed staff, they are not eligible to be paid by the government under the furloughing scheme.

However, thankfully the government has brought into effect the Self Employment Income Support Scheme, which allows freelancers and self-employed workers to claim a grant of 80% of maximum trading profits (up to £2,500 per month).

In order to claim this monthly grant, you must have submitted a self-assessment tax return for the year 2018 to 2019, and have traded in the year 2019 to 2020. And you will need to have lost trading profit as a result of Covid-19.

Look into other forms of financial support

It may be the case that you do not qualify for financial support in the form of the Job Retention Scheme or the Self Employment Income Support Scheme, in which case you may need to look at other potential options.

The first step is Universal Credit, which is the government scheme to help anyone who is on low income or out of work.

If you have a disability or health condition that limits how much you can work, you may also be able to claim on the Employment and Support Allowance (ESA).

Looking for other work

If you need to look for other work you might be concerned that Covid-19 has made it very difficult to find employment. However, there are opportunities available.

Many roles are being created in the industries that are now in demand due to the lockdown, such as retail, care work, haulage and distribution, and more.

Consider downsizing or moving to reduce your rent

The government has recommended that people should avoid moving during lockdown, however, official advice does recognise that in some situations it is unavoidable.

You might think that moving may not be possible during the current pandemic, however, estate agents, surveyors, solicitors, and more are finding new ways to continue work. Chartered surveyors Bradley Mason have a message that is typical of businesses in the sector as they state that they “are operating as normal, with all staff working remotely. We can make site visits where ever possible and all new enquiries will be dealt with in the normal way”.

Downsizing or moving to another location can be an important way to reduce your rent to a more manageable level.

Final thoughts

The vast majority of the country should fall under income protection schemes that should make it possible for them to pay their rent as normal during the Covid-19 lockdown. It is natural for you to have concerns, but staying informed about the situation is the best way to ensure security for your family.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

The best garden improvements to boost the value of your home this summer

The latest market insight from Yopa, the full-service estate agents, has revealed which garden features make the most worthwhile project for homebuyers this summer, based on the actual value they add to a home once the cost of implementing them has been accounted for, with some adding as much as £8,000 to the value of…
Read More
Breaking News

South West Named Top Haven for Over-50s Downsizers

New Research Reveals Prime Destinations for Older Movers Seeking Community, Lifestyle, and Affordability The South West of England has officially become the UK’s top destination for over-50s looking to downsize, according to new research by over-50s property specialists Regency Living. With nearly half the population aged 50 or over (43.0%), the region leads the country…
Read More
Breaking News

Modern industrial strategy to modernise Britain

The Government’s ‘Industrial Strategy’ has been released, alongside its 10-year plan to increase business investment across eight growth-driving sectors significantly. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “Construction will build the premises that businesses need, deliver the homes which stop brain drain, and ensure the infrastructure, such as transport or…
Read More
Breaking News

As few as 22% of HMOs have a usable garden

With the summer here and the weather well and truly hotting up, new insight from COHO, the HMO management platform, reveals where in England you’ve got the best chance of finding a shared house with a usable garden. And just for good measure, they’ve also worked out where the most pet friendly and car friendly…
Read More
Breaking News

Housing Ombudsman’s report demonstrates necessity of vibrant and growing private rental sector

Following a recent report from the Housing Ombudsman titled ‘Spotlight Report: Repairing Trust’, which revealed that 2024/25 witnessed a 474 per cent surge in complaints about poor living conditions compared to 2019/20, Propertymark has stated that this demonstrates the necessity for a vibrant and growing private rental sector. Referencing the UK Government’s ambition to construct…
Read More
Breaking News

Inheritance Tax Receipts raise £1.5 billion in two months

Inheritance tax receipts hit £1.5 billion in the first two months of the current tax year, according to data released by HM Revenue and Customs (HMRC) this morning. This is £98 million higher than the previous tax year, and continues an upward trend over the last two decades. Nicholas Hyett, Investment Manager at Wealth Club…
Read More