The Housing Communities and Local Government committee have asked the government to help tenants in arrears pay their rents.
MP’s should introduce a system of financial support for tenants with significant arrears instead of extending bans on evictions.
Helping tenants with arrears stands at around £200-£300 million and would be an easier and straightforward way to support tenants and ensure landlords continue to receive an income.
According to the report from the committee of MP’s, it has been easier for tenants to fall behind during the pandemic and a potential solution to consider would be like the low-interest loans that Scotland and Wales have set up.
Committee Chair Clive Betts said: “They are concerned with the level of rent arrears and helping tenants to pay their arrears would be a costly but more effective way to prevent expenditure on homelessness assistance in the future”.
This is a tough one. Since March 2020 around half a million private renters have fallen into arrears and are now worried about being evicted from their home. That said, many workers will have been furloughed and thus got 80% of their normal pay so we se no excuse to not paying rents. That said, there will still be many self employed and company directors who received no financial assistance through lockdown. We would be interested to see who qualifies.