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Tower Quay properties who look after more than 100 properties for millionaire John Christodoulou have refused rent reductions for tenants. The block in east London is home to more than 100 tenants, all of whom sent a letter to the managing agent, requesting a reasonable 20% rent reduction because of the pandemic. However, Tower Quay wasn’t moved in the slightest…
The agent’s reply to their demands was unequivocal.
“Subsequently, when all of this is taken into account, in most cases we believe the impact on disposable income will be minimal, and there is, therefore, no justification for any reduction in rent, especially considering that whilst tenants are isolating the wear and tear in properties is increasing, which will be at the cost of the landlord.”
Save Money on Lunch and Holidays Tenants Told
The tenants were told they could make savings from not spending on holidays, travel, and other non-essential expenses. It was also pointed out that many tenants could now access government support, such as a grant for self-employed workers and the job retention scheme. However, given the average cost of renting a property in that part of London is now £1,673 a month, there won’t be a lot of cash left over.
Tenants living in the building claim most are self-employed and virtually all of them have lost work since the pandemic began. They were hoping for a rent reduction to help ease their cash flow problems, but it doesn’t look likely. One tenant living in the block said he was told he could get a 20% rent reduction, but he’d have to pay the additional amount in July and August. In addition, if he spoke about the offer to other tenants, it would be withdrawn.
No Jobs = No Money
The problem with a short-term rent reduction is that jobs are in short supply and most people will suffer financial problems for a lot longer than 2-3 months.
The London Renters Union (LRU) says the government needs to suspend all rent payments for the duration of the coronavirus pandemic. It warns of a serious problem in the private rental sector if landlords don’t help struggling tenants. However, the management agency at the centre of the rent storm in East London, whilst apologising for their remarks about lunch and holidays, claims it isn’t possible to offer rent reductions across the board without government help. It told the Guardian that not all tenants needed help, as some were still capable of paying their rent.
The Covid-19 pandemic is wreaking havoc everywhere and landlords are just as vulnerable as tenants. Whilst millionaire landlords probably have less to worry about, the majority of landlords rely on the rental income from the properties. Mortgage lenders have said landlords can apply for payment holidays if their tenants are struggling, but this is a stop gap and defers the problem to a later date. This is a worrying time for everyone, not just tenants.
