The challenge we are about to present to you today is that of rentals o freeze . The city at stake in this great undertaking is the wonderful London. Wonderful despite the crisis due to both Brexit and the Covid emergency. Several times we have talked about how, in many countries, immediate regulations have been passed on the facilitation of rent payments for the lower classes. In order to prevent the real estate sector from suffering a major setback, the mayor of London has decided to intervene. Given the importance of this action, in this historical period above all, we thought it appropriate to create a guide in this regard. To inform the curious and, at the same time, to guide those directly concerned. So, if you are ready, we can inaugurate today’s column !
According to Mayor Sadiq Khan, the situation in London and worldwide is very critical. This is why he was not surprised by the action taken in this area. In fact, Khan has decided to go to the tenants who are in serious difficulty. Trying to find a compromise between necessity and law. Before the courts declare eviction proceedings for non-payment to be final.
The solution ? Rent to freeze.
But what is this course of action ?
The mayor, a member of the laborist party, wants to avoid that the rents increase also in terms of payments, through the extension of the payment for the next five years.
Where did this idea of freezing rents come from ? Surely the plan implemented in Berlin will not play you new. Yes, England has considered the idea of following in the same footsteps as Germany. Of which we had spoken in previous columns. But this initiative does not seem to have met with the approval of everyone. On the contrary. There was no lack of controversy about it.
There are many problems with frozen rents. Perhaps too many. Considering that this initiative will probably neither be supported by the majority nor applied. The reason ? The lack of funding to make up for tenants’ defaults.
It should be remembered that London alone has about two and a half million tenants. This means the excessive need for significant resources. Perhaps too many to apply a similar initiative. A quarter of the tenants in fact, is behind with payments. Probably due to the pandemic emergency. Therefore, it is not surprising that the first Londoner made such a decision.
In conclusion, it is not possible to define with certainty the margins of this circumstance. Whether or not the plan of rents to be frozen will be implemented. What is certain is that this situation has stirred up the various centers of power, leading them to act immediately. Although we do not have a clear picture of London’s future, we at Realigro assure you that we will always be here. Ready to give you more news that characterize the real estate. So, stay tuned to receive the most famous news in the international brick world!
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