The London Property Alliance has written to the chancellor asking him to “exert pressure” on the finance industry to be more lenient to landlords during coronavirus disruption.
The LPA said that while landlords are helping tenants through rent deferrals and holidays, they are “risking their own assets, credit ratings and survival prospects” in doing so because the finance industry is not providing the same flexibility to them.
Many property companies are unable to help their tenants without breaching debt covenants and loan obligations, which the finance industry is still upholding.
“Unless the government is able to exert pressure on all these lenders, and work with governments and financial regulators around the world to do likewise, the ability of the property sector to support their tenants will be seriously constrained,” the LPA said.
The body requested three points to be met in order for the government to show “unequivocal support and a concerted effort” to ensure banks, funders and lenders are granting property owners flexibility.
The LPA asked Sunak to:
- compel the finance industry to be financially flexible;
- review the business rates relief waiver set at £51,000, which is not available to SMEs in high-value areas, particularly London; and
- provide a one-year rates holiday for unoccupied buildings.
“We believe that the changes above could make a considerable difference in helping to shield a key part of the economy through this difficult and incredibility turbulent time. Central London plays a key role in supporting the capital and UK economy,” the LPA said.
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