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My Lords, I declare my interests as in the register. Can the Minister comment on what plans the Government have to assist small and medium landlords who are unable to recover Covid-related rent arrears and face potential enforcement action by their mortgage providers? Might the Government persuade mortgage providers to extend their overall repayment period in these cases, instead of seeking to enforce the mortgage?
My Lords, I declare my interests as in the register. Can the Minister comment on what plans the Government have to assist small and medium landlords who are unable to recover Covid-related rent arrears and face potential enforcement action by their mortgage providers? Might the Government persuade mortgage providers to extend their overall repayment period in these cases, instead of seeking to enforce the mortgage?
My noble friend will be pleased to know that, to support landlords, mortgage lenders have agreed to offer payment holidays of up to six months, including for buy-to-let mortgages. Although that is available only until July 2021, from 1 April 2021 there have been moves to enable forbearance options tailored to the individual landlord.
My Lords, is it not essential in producing this final scheme that it should be as fair and as protected as the deposit protection schemes which exist for tenants’ deposits at present? In particular, there needs to be some kind of recognition that estate agents have to receive money in order to get the security checks, references and other things they need. They have to be carefully considered as well. It has to be fair to all parties.
My Lords, is it not essential in producing this final scheme that it should be as fair and as protected as the deposit protection schemes which exist for tenants’ deposits at present? In particular, there needs to be some kind of recognition that estate agents have to receive money in order to get the security checks, references and other things they need. They have to be carefully considered as well. It has to be fair to all parties.
My Lords, it certainly does need to be fair to all parties. The evidence from the consultation was that about 85%, if I am not mistaken, backed the need for enforcement in this area, so that obviously was a key factor. I agree with my noble friend that the consultation will need to ensure that it is fair and equitable across a wide variety of people.