Upsides in the property world in a lockdown? – The Property Chronicle
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Upsides in the property world in a lockdown?

The Analyst

We would be forgiven for thinking that we are all doomed if you read all the press at the moment.  However, hidden amongst the gloom spewed out through the BBC and other blood thirsty press reports, was a chink of some hopeful, if not good, news last week. The Bank of England and the City are already cautiously noting that the first economic upswing, as we start to head out of lockdown, is more pronounced than people had anticipated. Early days of course – there is also a lot of bad news to read as many jobs are sadly lost and businesses fail. Further, we know the Government has had to invest an unprecedented amount of public money into the Treasury to shore up the country that will need to be repaid somehow. However, difficult though it might be to read, some business casualties like Laura Ashley and Debenhams had had their day and Covid-19 did not cause their demise. This vicious and unprecedented pandemic will be the cause of some ailing (and some not so ailing) firms to fail but it will also bring opportunities to other more resilient businesses and investors as, as in nature, it will be survival of the fittest – some may argue that is not an altogether bad thing.

The Cabinet Office Guidance on 7 May encouraging reasonable behaviour in contracting sparked many references to property transactions. The property world has had its fair share of casualties together with many battles to fight with tenant friendly commentaries suggesting all tenants, residential and commercial, should be let off payment obligations whilst they are out of work or not trading.

Not all Landlords are the greedy Rachmans of our day and, if we aren’t careful, this Landlord bashing can appear to be no more than class warfare fanned by the left wing press. Some landlords are bad, some are good. They reflect the rest of the world. If you are a pension fund landlord your collections could be paying a miner in Wales his pension and options to waive rent have serious consequences for others depending on that money.

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