New practice direction for housing possession claims and what it means for landlords
a.hughes • April 3, 2020
The Master of the Rolls and the Lord Chancellor have signed Practice Direction 51Z (PD) staying all possession matters that are ongoing for a minimum of 3 months during the COVID-19 pandemic. The PD is effective from 27th March 2020.
This means that all housing possession claims and all proceedings seeking to enforce an order for possession by a warrant or writ of possession are stayed for a period of 90 days from 27th March 2020. This date can be extended if needed.
Even though court action cannot be taken there are still some options available to landlords. You can read about the alternatives to possession proceedings during this period here -
https://www.woodstockpropertylaw.com/covid-19-impact-on-the-private-rental-sector
The pandemic does not mean a rent free period for tenants. There is support available for tenants who find themselves facing financial hardship. In the first instance tenants are encouraged to discuss with their landlord if they are genuinely unable to pay some or all of their rent.
The Government has introduced a strong package of financial support, which includes: -
- The pre-action protocol requirement will be extended to private rented sector. This will help landlords and tenants to agree reasonable repayment plans where rent arrears may have arisen.
- The Chancellor announced the Government will pay up to 80% of a worker’s wages, up to a total of £2,500 per month, where workers are placed on the Coronavirus Job Retention Scheme.
- Self employed workers can claim a grant through the Coronavirus Self-employment Income Support Scheme
- Both Universal Credit and Housing Benefit will increase and from April, Local Housing Allowance rates will pay for at least 30% of market rents in each area.
- There are also grants for businesses who pay little or no business rates
- For self employed workers there is a deferral of Self Assessment income tax payments due in July 2020 and VAT payments due from 20 March 2020 until 30 June 2020
Some landlords have obtained a ‘mortgage holiday’ during this crisis. This does not mean that there is any free money. Landlords will still need to cover this amount, either through increased monthly repayments or increasing the mortgage term (which means paying more interest over the term of the mortgage).
Therefore, tenants must still continue to pay their rent where they can. In many cases the COVID-19 outbreak should not affect a tenant’s ability to pay rent. If there is an impact, then as a result of the Job Retention Scheme and the Self Employed Income Support Scheme, it is not unreasonable to expect tenants to pay at least 80% of their rent.
We appreciate that the support is not available for everyone and for those genuinely facing hardship we encourage landlords and tenants to work together during this difficult time.
Communicate, mediate, don't litigate where at all possible and stay safe.










