Rent Arrears ‘Much Worse Than Feared’ Ahead Of UK Cost Of Living Crisis

 The number of universal credit claimants at least two months behind on rent soared by 70 per cent in the first half of this year, according to new analysis. Official figures show around 190,000 people in England who receive universal credit were in severe rent arrears by May this year. This compares to just over 110,000 people at least two months late on rent payments as of December 2020. This does not take into account people who have been behind on their rent for just one month or those who have fallen into arrears since May. Read more on the Big Issue website.

https://www.bigissue.com/news/housing/rent-arrears-much-worse-than-feared-ahead-of-uk-cost-of-living-crisis/

Rents: Arrears – Parliamentary Written Answer

Lord Carrington: To ask Her Majesty's Government, further to their press release Support for renters continues with longer notice periods, published on 12 May, on what grounds they have concluded that many landlords are “highly vulnerable to rent arrears”.

Lord Greenhalgh: We know that 45% of landlords have just one rental property and 38% have between two to four properties. For most landlords, income from rent makes up 42% of their total gross income making them highly vulnerable when their tenants build up rent arrears. The Government has to balance supporting tenants with landlords' ability to exercise their right to justice where needed. As national restrictions continue to ease, it is appropriate that the emergency measures start to lift but we are doing so gradually.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2021-07-14/HL2002 

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

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

Landlords Made Scapegoats For COVID Rent Debt Crisis

The Chancellor is making landlords the scapegoats for the COVID rent debt crisis as he turns his back on the support the sector needs. A new report published by the National Residential Landlords Association outlines the toll that COVID-19 has taken on the private rented sector. It warns that without financial support to tackle COVID-related rent arrears, the Chancellor is forcing landlords into a corner. They either have to accept continuing to receive no income or resort to repossessing their property with all the consequences this course of action entails for tenants. The NRLA is warning that the goodwill of landlords in the face of mounting rent debts cannot continue without support from the Treasury. Read more on the NRLA website.

https://www.nrla.org.uk/news/landlords-made-scapegoats-for-covid-rent-debt-crisis 

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 

Financial Support Package Needed Now To Address COVID-Related Arrears

Propertymark, alongside other organisations, has written to the Minister for Rough Sleeping and Housing, Eddie Hughes MP, to emphasise the sector's ongoing concerns over COVID-related rent arrears and urging the UK Government to come forward with a package of emergency financial support. The organisations have provided a briefing to the Minister which explains why renters and landlords whose finances have been affected since the start of lockdown measures in March 2020 cannot keep tenancies going without additional financial support. Measures from the UK Government have provided some short-term relief but have not done enough to protect renters going forward. Read more on the ARLA website.

https://www.arla.co.uk/news/june-2021/financial-support-package-needed-now-to-address-covid-related-arrears/

Rents: Arrears – Parliamentary Written Answer

Ian Byrne: To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the number of households with 4 months’ or more accumulated rent arrears as of 1 June

Eddie Hughes: Data from the English Housing Survey Household Resilience Study November-December 2020 suggested that 1% of private renters were 2 months or more behind. Additionally, approximately 3% of social renters were 2 months or more behind.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-06-04/10694

Rents: Arrears – Parliamentary Written Answer

Jon Trickett: To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the number of renters who in arrears in each region of the UK in the latest period for which figures are available.

Eddie Hughes: Data from the English Housing Survey (EHS) Household Resilience Study November-December 2020 suggests that 9% of private rented households and 11% of social rented households are in arrears.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-05-18/2885

London Boroughs Fear ‘Summer Wave Of Homelessness’

Councils in London fear there will soon be a spike in homelessness in the capital due to the ongoing economic impact of the pandemic combined with the ending of government protections to prevent people losing their homes. Boroughs fear a spike in homelessness due to the “triple whammy” of high unemployment and rent arrears, the ending of the eviction ban and uncertainty over homelessness funding. Read more on Inside Housing.

Inside Housing - News - London boroughs fear ‘summer wave of homelessness’

HA Rent Arrears Could Rise By £330m After Universal Credit Switchover

 Rent arrears among housing association tenants in England could rise by £330m after the switchover from legacy benefits to Universal Credit is complete, the National Housing Federation (NHF) has warned. A survey of housing associations found that the number of tenants claiming Universal Credit for help with their rent costs increased by 83% between June 2019 and September 2020 amid the coronavirus pandemic. The increase means households claiming Universal Credit accounted for 28% of all occupied general needs homes owned by housing associations as of September last year. Of these, 60% had fallen behind on rent compared with 36% paying by other means including housing benefit. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/housing-association-rent-arrears-could-rise-by-330m-after-universal-credit-switchover-nhf-warns-70420?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Government Urged To Step In And Pay Off Escalating Rent Debts

The latest analysis shows that there are an estimated 840,000 private tenants who have built rent arrears since lockdown measures began, with many likely to lose their homes in the long term as a result. A year on from the first ban on the repossession of rented homes, the latest research from the National Residential Landlords Association has revealed that with no action possible against them, these debts are increasing to the point where there is no hope of many being able to afford to pay them back. The outcome will be that most will have to leave their homes as emergency measures taper down from June. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/crisis-in-the-prs-government-urged-to-step-in-and-pay-off-escalating-rent-debts.html

Benefits Freeze Will Leave Tenants Facing Rent Arrears Of £1,000

Low-income tenants across much of Britain will be left hundreds of pounds worse off from next month due to the government quietly imposing a real-terms cut in housing benefit. From April, the government is freezing the amount of local housing allowance (LHA), meaning tenants will receive the same amount of money as last financial year, even where rents have gone up. LHA is paid to tenants in privately rented homes, including those on universal credit. In some parts of the country, tenants are set to lose more than £1,000 a year as a result of a combination of rising rents and the new benefit freeze. Read more on the Observer website.

https://www.theguardian.com/money/2021/mar/13/benefits-freeze-will-leave-tenants-across-britain-facing-rent-arrears-of-1000

Rent Debt Crisis 'Could Lead To Homelessness'

Half a million renters could lose their home without financial help, debt charities, lenders and landlords have warned. These renters are under pressure from debt they've built up since the pandemic. A group of organisations has asked the government for a targeted support package to help struggling people. A spokesperson said the government had put in place schemes to support households. The group of organisations warned of renters losing their homes in the coming months, and a rise in homelessness, without more support. Read more on the BBC website.

https://www.bbc.co.uk/news/business-56103280

450,000 Families ‘Behind On Rent Because Of Covid’

Almost half a million UK families are thought to have fallen behind on rent, as a result of the coronavirus crisis, according to the Resolution Foundation. It said more than 750,000 had been behind on housing costs last month. That is 450,000 more than January 2020. "Despite widespread calls for forbearance in the face of the Covid-19 shock, just 3% of private renting families have been able to negotiate a lower rent over the last 10 months," the think tank said in a report. Meanwhile, one in 20 private renters in the UK said they had been refused rent reductions. Read more on the BBC website.

https://www.bbc.co.uk/news/business-56075518 

Social Housing Rent Arrears Hit Record £1bn

Figures collected by HouseMark showed a 30% increase in outstanding rent arrears since March 2020, with forecasts suggesting that arrears levels may not return to pre-pandemic levels until March 2022. Many renters have faced extreme financial hardship as a result of the repeated lockdowns that have been put in place throughout the pandemic. The increase equates to an additional £300m in arrears since March, which contributed to the record total of £1bn. The data is based on figures from 104 social housing providers for the month of December 2020, with trend data since March 2020. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/social-housing-rent-arrears-hit-record-1bn-69364?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

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 

Social Housing Arrears 40% Higher In Areas With Tighter Local Restrictions

The level of rent arrears reported by social landlords operating in areas with tighter COVID-19 restrictions in October was 40% higher than in those with the lowest level of restrictions. Data obtained by HouseMark shows that the overall level of arrears within the social housing sector continued to fall marginally to the end of October, when sector-wide arrears stood at 3.48% compared with a peak of 3.69% in June. However, the survey picked up on a regional variation in arrears, with those operating in areas with higher-tier restrictions reporting average arrears of 4.28% compared with 3.07% in areas with lower restrictions. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/social-housing-arrears-40-higher-in-areas-with-tighter-local-restrictions-survey-shows-68922

Half A Million Tenants In The UK Battle To Pay Rent Due To Benefit Cap

Almost half a million low-income tenants who are claiming universal credit – many of whom were forced to apply for the benefit during the pandemic – are struggling to pay rent because it only covers the cheapest third of rents in each part of the country. New analysis by Generation Rent suggests 474,000 tenants in the UK currently face a shortfall between their universal credit housing payments and their actual market rents, including 91,904 people in the north west of England which has particularly badly hit by coronavirus. Read more on the Observer website.

https://www.theguardian.com/world/2020/nov/01/half-a-million-tenants-in-the-uk-battle-to-pay-rent-due-to-benefit-cap

One In Four Concerned About Paying The Rent

 There has been a rise in the number of letting agents reporting rental arrears with huge swathes of tenants admitting that they are anxious about meeting their rental obligations following the pandemic. The data found that large numbers are considering moving to a new property as working from home becomes the norm and financial situations shift. A quarter of the 2,750 tenants expressed concerns about paying the rent, with 12.5% saying that they had either missed rental payments due to COVID-19 or had to make alternative arrangements in order to pay their rent. An additional 12% said they were concerned about their ability to pay their rent going forward. Read more on the Property Reporter website. 

https://www.propertyreporter.co.uk/landlords/one-in-four-concerned-about-paying-the-rent.html