Industry News Rhianna Abrey 08/12/2021

Tenants with covid rent debts see arrears increase

Average rent debts still owed by renters as a result of the pandemic have increased by 41 per cent since May according to new research.

A survey of over 2,000 private renters in England and Wales by research consultancy Dynata for the NRLA found that average COVID related rent arrears owed by affected tenants had increased to £1,270, up from £900 in May.

Whilst the proportion of tenants who had built arrears since March last year that still needed to be paid off had almost halved to 3.7 per cent (from seven per cent in May) this still amounts to over 430,000 private renters.

The survey found also that over half (57 per cent) of those with outstanding COVID related rent arrears were not in receipt of Universal Credit, making them ineligible for Discretionary Housing Payments.

More broadly, almost 59 per cent of private renters in receipt of Universal Credit said that the decision to cut payments by £20 a week would make it more difficult for them to cover the cost of their rents.

The UK Government has made funding available for councils in England to help vulnerable renters affected by the pandemic. The NRLA is calling on local authorities to ensure this is focused on those unable to access emergency housing benefit support.

For those in receipt of Universal Credit, the NRLA is calling on the Government to reverse its damaging decision to freeze the housing cost support element.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“The NRLA is concerned that tenants with outstanding COVID related rent debts are seeing these arrears increase. Whilst landlords have done all they can to support affected tenants, they simply cannot afford for this situation to continue indefinitely.

“With the Government having made funding available for affected tenants it is now vital that councils get this to those affected renters as swiftly as possible. In doing so they should prioritise those not eligible for emergency housing benefit support. This course of action is the best way to sustain tenancies and keep people in their homes.”