Housing contracts, rent and mortgage payments in the COVID-19 era: A practical guide to managing your situation
Whether you’re liable for rent or mortgage payments, housing costs are likely to constitute either the highest or second highest (after tuition fees) source of expenditure that most of you will face each month.
It is therefore hardly surprising that so many of you have reported your housing concerns to us since the first lockdown measures were introduced back in March.
This blog will aim to provide some information and suggestions linked to the most common enquiries we’ve been receiving. However, much like any other source of information, it cannot cover everything, so if you’re still unsure what to do, or simply need advice more tailored to your particular situation, we’re just at the other end of an email.
With all lectures and assessments now online, many students have quite reasonably decided to leave London and head back home. The problem some have faced has been how to leave without being remaining financially liable for what is left of the contract.
The first point to make is that a housing contract is a legally binding document. Once you sign it, therefore, you are committing yourself to covering the rent until the tenancy end date.
However, whilst it is not always easy, there are ways to get out of a contract early. The simplest way is via what is called a break clause. If you have one, a break clause outlines the conditions under which you can exit your contract before the agreed date. If you’re thinking of going back home and don’t want to continue paying rent for a place where you’re no longer living, then tracking down that contract is the best place to start. We do appreciate that these aren’t the easiest of documents to read, however, and so if you’re finding it difficult to make sense of yours, drop us an email with your contract and we’ll do our best to help.
If you don’t have a break clause then you’ll have to negotiate with your landlord or letting agent. A common response to such an enquiry tends to be that they’ll let you leave as long as you find a replacement tenant. For obvious reasons, at the moment, that’s not going to be easy. That said, just because you can’t find a replacement doesn’t mean that they won’t let you out of the contract. The pandemic has shown some great examples of human generosity and compassion and landlords, believe it or not, are human beings too, so it’s always worth asking. Remember, if you don't ask, you don't get!
If you’re living in a hall of residence, the situation is a bit different. Fortunately most halls that house LSE students have already announced that they’ll be releasing those who need to vacate their rooms. The process will vary from provider to provider, but for LSE halls you’ll need to submit an Early Leaver Form (email [email protected] for more information). Unfortunately, at the time of writing there is still one LSE provider (Sanctuary – who manage Lillian Knowles) who are refusing to release students from their contracts. Whilst this is disappointing, the LSESU Sabbatical Officer Team are doing all they can to pressure both Sanctuary and the School to try to find a solution that ensures that Lillian Knowles residents are not left in a disadvantageous situation versus students in other LSE halls. We’ll endeavour to keep students posted on any developments so keep an eye on our social media channels for any updates.
If you’re in Lillian Knowles (or anywhere else for that matter) and would like to discuss your particular housing concerns then drop us an email at [email protected] or visit our Student Hub page to book a call or virtual meeting. You can also let our Officers know your thoughts on this (and other LSE Coronavirus issues) by filling in this form.
Worried about meeting rent or mortgage payments
The number one issue students are approaching us about at the moment is COVID-19-related financial hardship, particularly with regards to rent. Whilst Government measures announced last month protect most renters who fall behind with payments during this period from being evicted, it doesn’t prevent the arrears themselves from mounting. If you find yourself in this situation you might want to reach out to one of the hardship funds available to you as an LSE student – the one we administer or the one administered by the LSE’s Financial Support Office.
We’re helping dozens of students in this situation at the moment so if you’re struggling and are concerned, submit an application.
If you’re unable to cover your mortgage payments then you should speak to your lender as soon as possible. Another Government measure announced last month means that banks and building societies should be able to provide payment breaks up to 90 days, easing the financial pressure on those with these commitments.
Rent/mortgage concerns for those back at home
Finally, many of you might now also be living back at home, with parents or guardians who are themselves struggling to cover rent/mortgage payments. If your household is in this situation then you might want to explore whether there are any social security options they can pursue. It is beyond the capacity of this blog to detail the options available in other countries, but in the UK both Universal Credit (UC) and Local Housing Allowance (LHA) have increased from April and therefore might, alongside the other aforementioned solutions, provide some much needed support at this extraordinarily challenging time.
In addition to the LSESU Advice Service, there are a host of services you can turn to for housing advice. Here are a few of the ones we’d most recommend:
- University of London Housing Services (ULHS)
However bad your housing situation seems right now, try to remain positive. Just because your situation feels insurmountable, doesn’t mean it has to be, or even that it will be. Things often appear worse than they are, particularly when you’re living them. The best way to counter that feeling? Talk to someone. Get help. If you take one thing from this blog, let it be that. Support is out there, so reach out and grab it.
Blog written by Ricardo Visinho.
Ricardo is the Advice Manager in the LSE Students’ Union and a member of the Advice Team.
The LSESU Advice Team is based on the 3rd floor of the Saw Swee Hock Building and we provide free, independent and confidential advice to all LSE students on academic and housing matters. We also administer the Hardship Fund, the Childcare Fund and the Graduation Gown Support Fund (GGSF).
Due to the ongoing Coronavirus situation we are currently not on campus. However, we are still open and can instead be accessed by emailing [email protected]. You can also book a telephone or Zoom appointment with an adviser through Student Hub.
