A huge amount of rental debt built during the coronavirus crisis is set to get worse amid imminent Universal Credit cuts, according to a charity.
About half a million private tenants are now attempting to stay on top of £360 million in rent arrears across the UK, according to calculations from StepChange Debt Charity.
Private renters in arrears said they were behind by just under £800 on average.
The charity said a planned £20-per-week cut to Universal Credit will escalate entrenched difficulties.
Many renters are barely surviving. The impending £20 cut to Universal Credit will make paying the rent even harder and new @StepChange research shows that it risks pushing thousands into homelessness.
— Crisis (@crisis_uk) September 17, 2021
That’s why the Government must #KeepTheLifeline https://t.co/ZpAaQeQNcd
A case that the charity used to bring attention to this issue involved a 61-year-old from Essex in £2,000-worth of rent arrears.
They said: “I have recently managed to get some help from the council regarding my rent and am just about managing to pay it in full, but I’m still not really able to pay anything towards the arrears.
“Luckily the landlord seems fine with this at the moment, but obviously that could change at any time.”
How many renters will be affected by this?
The research from StepChange suggests that around one in 10 renters who are in work fear they will be evicted from their homes due to their debts within the next year.
In another case, a woman who works for a travel company and is in £2,000 of rent arrears told StepChange: “My husband is suffering with long Covid and although he is at work, the stress of not hitting his targets is really affecting his mental health.
“He is just about earning enough to pay the rent, but not enough to be able to contribute towards the arrears.”
Phil Andrew, chief executive of StepChange speaking to the PA News Agency, said: “Covid support schemes, while a lifeline for many, haven’t been able to help renters address their arrears and with cuts to Universal Credit and the end of furlough imminent, there is a real danger of thousands losing their homes.
Half a million private tenants are battling a £360m mountain of rent debt that shows no signs of decreasing.
— StepChange (@StepChange) September 17, 2021
The Universal Credit cut and the end of furlough will make it even harder for renters to pay off these arrears and keep their homes.https://t.co/pHCj7qdEt3 pic.twitter.com/dUKrA1wMYi
“That’s why StepChange is calling for a dedicated financial support to help ensure renters can safely wind down Covid rent debts and keep their homes.
“By establishing a dedicated rent debt fund, and by scrapping the planned Universal Credit cut, the Government can avert the threat of a rise in evictions, problem debt and homelessness that will compound financial and social problems and hamper economic recovery,” he added.
As part of the research more than 8,000 people were questioned
Chris Norris, policy director for the National Residential Landlords Association speaking to the PA News Agency, said: “Many tenants and landlords have struggled throughout the pandemic.
“The end of furlough combined with cuts to benefits creates a perfect storm as those affected face the prospect of rent arrears getting worse.
The Government must #keepthelifeline and urgently step in with targeted financial support. Otherwise, thousands face eviction, homelessness and problem debt. #CovidDebtRescue pic.twitter.com/qqtsf4UH3j
— StepChange (@StepChange) September 17, 2021
“These are debts that landlords cannot afford to sustain indefinitely. The Chancellor needs urgently to follow the examples set in Scotland and Wales and come forward with transitional support to get Covid-related arrears paid off.”
A Ministry of Housing, Communities and Local Government spokesperson said: “Our £352 billion support package has helped renters throughout the pandemic and prevented a build-up of rent arrears.
“We also took unprecedented action to help keep people in their homes by extending notice periods and pausing evictions at the height of the pandemic.
“As the economy reopens it is right that these measures are now being lifted. We will bring forward further proposals in due course to create a fairer and more effective private rental sector that works for both landlords and tenants, including the abolition of Section 21 ‘no fault’ evictions and further support for landlords where repossession is necessary.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel