Rent holidays
Q&A:
Rent
holidays
Last week the government announced that it was offering mortgage holidays to people who have bought a home. So far it hasn’t introduced any new legislation to support renters, but we are closely following their advice and will let you know if this changes.
Following this announcement, some of our customers have asked us whether we can give them a "rent holiday".
We love holidays, but unfortunately we can’t offer any rent breaks unless the government steps in to help. If you have been affected by coronavirus and need some financial support or advice, please speak to our rent team: income.management@silvahomes.co.uk
Why we can’t give our customers a rent holiday
1. Renting a home is very different to buying.
When you buy a home, you pay a deposit and then you make monthly mortgage payments until you’ve paid off the full value of the property.
When you rent a home, you pay a set amount every month for as long as you live there, until you decide to move into a different property.
2. The term “mortgage holidays” is deceptive.
Mortgage holidays will help anyone who has bought a home and is paying a mortgage if their income is affected by coronavirus.
However, these people will have to pay for the full value of their home. Whatever they don’t pay in the next three months will need to be paid at a later date. This means their mortgage payments will be higher in future months – and they will also need to pay more interest.
3. Your rent helps us deliver our essential services.
We reinvest all our income into our homes. Your rent enables us to continue providing essential services for our customers, including housing, estate and tenancy management, repairs and maintenance, and improvements to homes, and building new properties.