Only London’s Highest Earners Able To Rent Privately At Affordable Cost

 Only the top 25% of earners in London were able to privately rent a property in the city at an affordable rate last year, according to official figures on costs across England. Data from the Office for National Statistics revealed that for three-quarters of households, rents in the capital were set at a level equal to more than 30% of their income. The ONS said it considered an area to have affordable private rent if tenants spend no more than 30% of their income on it. Rents in some parts of the country dropped when the pandemic struck but in recent months costs have started to rise again. Read more on the Guardian website.

https://www.theguardian.com/money/2021/oct/06/london-rent-privately-affordable-ons-household-income

Covid Sharpens Inequalities In UK Housing Market

Figures from building society Nationwide show one in four private renters think the pandemic has made it more difficult for them to buy a home. Sharp rises in house prices over the last year, driven by demand being stoked by the stamp duty holiday and prospective homebuyers rushing to snap up larger properties with gardens, has reduced housing affordability for first-time-buyers. Research from property search site Rightmove shows house prices jumped 5.7 per cent annually in July to reach a record high. Read more on the City AM website.

https://www.cityam.com/covid-sharpens-inequalities-in-uk-housing-market/

Landlords Warned To Prepare For Rise In Tenant Fraud

The events of the past 18 months have dealt a devastating socio-economic impact on private renters in the UK, with an estimated 840,000 building up arrears as a result of covid. Compounding this is the softening of eviction regulations and virtually no consequences for fraudulent rental applications - fuelling a rise in tenant fraud. Rising unemployment and affordability amongst renters are also impacting the number of fraudulent applications. According to tenant due diligence and guarantee firm, Homeppl, there was a 71% increase in the number of fraudulent applications between the second half of 2020 and the first half of 2021 meaning that one in 50 rental applications are now fraudulent, rising to one in 20 in London. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/landlords-warned-to-prepare-for-rise-in-tenant-fraud.html

Private Rents Falling In Real Terms Says New Data

Rents paid by private tenants across the UK are falling in real terms according to official data. The figures from the Office for National Statistics show that private rents rose by 1.2% in the 12 months to June of this year. This increase remains well below all measurements of inflation with the smallest increase, CPI including housing costs, being 2.4 per cent. Private rents grew by 1.1 per cent in England. 1.5 per cent in Wales and 1.2 per cent in Scotland. Read more on the NRLA website.

https://www.nrla.org.uk/news/private-rents-falling-in-real-terms-says-new-data 

Rents: Arrears – Parliamentary Written Answer

Mike Kane: To ask the Secretary of State for Housing, Communities and Local Government, with reference to the publication of the Household Resilience Study, Wave 2, what assessment he has made of the reasons that the proportion of private renters in arrears has increased during the covid-19 pandemic.

Eddie Hughes: The latest published data from the English Housing Survey Household Resilience Study from November – December 2020, suggests that 9% of private renters are in arrears, compared to 3% pre pandemic. Of the 9% (353,000 households) in arrears, two thirds are in arrears of less than 2 months, indicating the Government package of economic support measures have effectively prevented a widespread build-up of rent arrears

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-06-18/18528

Rents: Arrears – Parliamentary Written Answer

Vicky Foxcroft: To ask the Secretary of State for Housing, Communities and Local Government, what estimate his Department has made of the number of people in the UK in rent arrears after the end of the ban on bailiff-forced evictions on 31 May 2021.

Eddie Hughes: Data from the English Housing Survey (EHS) Household Resilience Study suggested that approximately 9 per cent of private renters were in arrears in November - December 2020. Most renters in arrears, had arrears of less than 2 months.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-06-07/11593 

Covid Arrears Leaving Thousands Of Renters Unable To Move Home

Thousands of private renters who have built arrears during the pandemic are struggling to find a new home because of damage to their credit scores, according to a new survey. The research, from the National Residential Landlords Association (NRLA), found that approximately 210,000 tenants may face severe difficulties in getting landlords to let to them in future. Ahead of emergency restrictions easing in the private rented sector on 1st June, results from the survey show that 7% of renters have built arrears since lockdown began in March 2020. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/finance/covid-arrears-leaving-thousands-of-renters-unable-to-move-home.html

Private Renters In England On ‘Cliff Edge’ As Eviction Ban Ends

Almost two million private renters fear they will be unable to find another property if they lose their home after the eviction ban is lifted, ministers are being warned. With the ban coming to an end this week, the government is facing demands for emergency legislation to increase the permanent protection for those struggling to pay their rent as a result of the Covid pandemic. Councils are also warning of a “cliff edge” of homelessness in the months ahead unless action is taken, with a potential £2.2bn bill for the state. Read more on the Observer website.

https://www.theguardian.com/money/2021/may/30/private-renters-in-england-on-cliff-edge-as-eviction-ban-ends

Covid Spread As Overcrowding Doubles Among Private Renters In England

The proportion of private renters living in overcrowded homes has doubled during the pandemic, adding to concerns that living conditions helped the virus spread, particularly among ethnic minorities. Figures from the English Housing Survey’s household resilience study found that the proportion in November and December last year was 15%, up from 7% a year earlier. That means more than one in seven private renters are enduring overcrowding, compared with only one in 50 homeowners. Overcrowded housing is believed to be linked to higher rates of coronavirus infection because it makes social distancing and self-isolation harder. Read more on the Guardian website.

https://www.theguardian.com/society/2021/apr/24/covid-spread-as-overcrowding-doubles-among-private-renters-in-england 

One In 12 Private Renters ‘Has Received A No-Fault Eviction Notice In Past Year’

One in 12 private renters in England has been given formal notice to move out without a reason since March 2020, a survey has found. Some 8% of private renters in England said they had received a Section 21 notice to quit during the coronavirus pandemic, which allows landlords to evict tenants without needing a reason. While the initial Section 21 notice is only the first stage of the legal process, many tenants move out before the case reaches court, according to Generation Rent, which campaigns on behalf of tenants and released the findings. Read more on the Belfast Telegraph website.

https://www.belfasttelegraph.co.uk/business/uk-world/one-in-12-private-renters-has-received-a-no-fault-eviction-notice-in-past-year-40314876.html 

One In Seven Adults Worried About Becoming Homeless During Pandemic

A poll of 3,603 people, carried out by YouGov, found that 14% of respondents were worried about becoming homeless because of the economic situation created by the COVID-19 crisis. Private renters were the group most likely to have concerns about becoming homeless, with 27% now fearing losing their home. Almost half (47%) of private renters said the COVID-19 pandemic has made them feel more anxious or depressed about their housing situation compared to 26% of the general public. Shelter’s research also found that 24% of private renters have had to borrow money to pay their rent in the past month. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/one-in-seven-adults-worried-about-becoming-homeless-during-pandemic-survey-finds-69973 

More Than 800,000 Renters In Arrears Due To Covid

Over 800,000 private renters in England and Wales have built rent arrears since lockdown measures began according to estimates.  A survey of tenants for the National Residential Landlords Association suggests that 7 per cent of private renters have built arrears due to Covid. Applied across the sector that would amount to 840,000 tenants. Whilst the average arrears were between £251 and £500, the survey finds that of those in arrears, 18% now have rent debts of more than £1,000. This would equate to over 150,000 renters. The survey finds that younger people and the self-employed are most likely to have been affected. Read more on the NRLA website.

https://www.nrla.org.uk/news/over-eight-hundred-thousand-renters-in-arrears-due-to-covid 

One In Four Private Renters Said Housing Situation Made Lockdown Harder

Conducted by YouGov, a poll of more than 5,000 adults found that 25% of private renters said their housing had made lockdown more difficult, compared with 13% of people living in social housing and 12% overall – the average across all tenure types. Private renters were more likely to say their housing costs had made the crisis harder to cope with; 29% said this was an issue compared with an overall average of 14%. A lack of outdoor space and indoor space were also raised as issues by private renters; 24% said the former had made lockdown more difficult and 29% said the latter. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/one-in-four-private-renters-said-housing-situation-made-lockdown-harder-new-research-shows-68099 

One In Five Private Renters Expect To Lose Their Job In Next Three Months

Research commissioned by the housing charity found an estimated 1.7 million adults living in the private rented sector expect to become unemployed as a result of the pandemic. Polling carried out by YouGov shortly after the government announced its job retention scheme revealed that 24% of private renters have already seen their incomes fall or lost their jobs. Some two million renters – 23% – believe losing their job would leave them immediately unable to pay their rent, the survey suggested. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/one-in-five-private-renters-expect-to-lose-their-job-in-next-three-months-says-shelter-66079?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Court Possessions Suspended

All court possession orders have been suspended with immediate effect. This affects mortgage holders as well as private and social renters across England and Wales. This will affect cases in the system as well as new cases for at least 90 days, though the timeframe may be extended. A government statement said:  “Landlords will have to give all renters three months’ notice if they intend to seek possession (i.e. serve notice that they want to end the tenancy) – this means the landlord can’t apply to start the court process until after this period. “This extended buffer period will apply in law until 30 September 2020.” Read more on the Property Wire website.

https://www.propertywire.com/news/possessions-suspended

Discounted Housing Scheme Out Of Reach Of Most First-Time Buyers

A high-profile housing scheme offering first-time buyers discounted homes will be unaffordable to the vast majority of workers on average or low incomes. The First Homes scheme has been described by ministers as “genuinely life-changing for people all over the country”. However, new analysis suggests it will be out of the reach of average earners in 96% of England. Research by Shelter found that, in almost all parts of England, someone on an average salary or lower could not afford to buy one of these new-build homes. It also shows that almost two-thirds (63%) of private renters in England have no savings at all for a deposit. Read more on the Observer website.

https://www.theguardian.com/society/2020/feb/16/first-homes-scheme-unaffordable-most-buyers

Two Million Renters In England Made Ill By Housing Worries

Almost one in four private renters – equivalent to two million adults – have felt physically ill or sick because of housing problems or worries in the last year. That’s the latest findings from Shelter and YouGov, revealing the dramatic impact that housing worries like affording rent, poor conditions, and the threat of eviction are having on people’s mental and physical health. According to reports, 45% of private renters (or 3.8 million adults) have experienced stress and anxiety as a direct result of their housing concerns, with nearly one in three (2.8 million adults) saying this has kept them awake at night. Read more on 24housing.

https://www.24housing.co.uk/news/two-million-renters-in-england-made-ill-by-housing-worries/

Private Renters Spending £11bn More Than They Can Afford On Rent

England’s private renters are paying out £11 billion more a year on rent than they can afford – or an average of £425 a month per household among those who are overspending – new research by Shelter shows. Using the widely accepted measure of affordability which says rent should take up no more than 30% of household income, the charity calculated the overspend by comparing government data on private rents and incomes. Hugely unaffordable rents are dominating daily life for millions of people, forcing them to rely on costly credit cards or borrow what they can from family and friends. Read more on 24housing.

https://www.24housing.co.uk/news/private-renters-spending-11bn-more-than-they-can-afford-on-rent/

2.4 Million Private Renters Could Lose Their Vote

More than two million private renters could miss out on voting at the General Election, analysis by Generation Rent reveals. Generation Rent is urging private renters to register to vote, highlighting 96 seats in England where newly registered private renters could cast the deciding vote. “Many renters are on 12 month contracts, meaning they are much more likely to move house in a given year,” said Caitlin Wilkinson, Policy & Public Affairs Manager, Generation Rent. “In key marginals across the country, renters registering could decide the outcome of the seat. Read more on the Generation Rent website.

https://www.generationrent.org/

Evictions Cost Private Renters In England £70m A Year

Private renters in England are losing out on about £70m a year when landlords kick them out as missed time at work, cleaning bills and moving costs stack up to £1,400 each on average, housing campaigners say. An estimated 146,000 households have been asked by landlords to leave their homes in the past three years, with rent arrears and an alleged lack of care for the property the most frequently cited reasons. The campaign group Generation Rent, which calculated the costs of moving out, said more than half the public believed landlords should foot the bill. Read more on the Guardian website.

https://www.theguardian.com/money/2019/oct/10/evictions-cost-private-renters-in-england-70m-a-year