Government Must Tackle Rent Debt Crisis

Propertymark, along with other organisations, has called on the Government to complete and publish a full assessment on how its decision to freeze Local Housing Allowance and cut Universal Credit has impacted renters. During the pandemic, the Government took steps to prevent a housing debt crisis – which included the restoration of LHA rates and increasing the UC Personal Allowance. However, the number of private rented households in receipt of UC increased by almost 107 per cent between February 2020 and February 2021. Additionally, the Government confirmed that where households are struggling to make ends meet they have an average £100 per month gap between the housing support received and the rent they must pay. Read more on the NRLA website.

https://www.nrla.org.uk/news/warning-issued-over-impact-of-benefit-cuts-on-renters 

Household Debt Serious Threat to UK Recovery, Says Bank of England Deputy

High household debt is a key risk to the recovery, the Bank of England deputy governor Sir Jon Cunliffe has warned, saying the Bank's measures to rein in the housing market should be thought of as insurance against a major crash. In a speech at the International Festival for Business in Liverpool, Cunliffe said UK household debt was equal to 135% of household earnings, compared with 110% in 2000, although it reached 165% in the runup to the financial crisis. The level was markedly higher than in other European countries and on a par with the US, he said. Read more on the Guardian website.