Furlough finishes on September 30th with many tenants facing an uncertain future
Throughout the pandemic, the Coronavirus Job Retention Scheme acted as a lifeline to millions of households across the UK. Extensions to the furlough scheme prevented a disastrous spike in unemployment by protecting jobs and income.
From September 30th furlough will end. Employers must decide to either bring workers back on their agreed terms and conditions; terminate their employment; or agree with employees any changes to terms and conditions of employment.
Estimates suggest that around 1.7 million jobs were still being protected as recently as the beginning of August, and now an independent think tank is warning that 900,000 people are still expected to be on furlough when it stops at the end of this month.
Resolution Foundation believes this pinch point is the next challenge for the labour market and that the outlook is hugely uncertain due to a number of different factors. It says that with so many ‘moving parts’ there is a wide range of possible outcomes - but concludes that unemployment is likely to rise.
What does this mean for letting agents?
• Hundreds of thousands of renters are currently either on furlough or behind on payments • The UK faces an eviction crisis with possession hearings still subject to lengthy delays • It costs £9000 on average in lost rent and legal fees to evict a tenant
Preventative action is now time critical.
Rent Protection will help safeguard your business and your landlord’s income. It’s not too late to learn how Rent Protection can benefit you and your landlords. Our expert advisers are on hand to help customers learn more about the products we offer and how they can protect your business. We make it easy to protect your business, and your landlord’s income, with Rent Protection you can trust. Get in touch today.