Almost one in five private renters in England – an estimated 1.7 million adults – say they are likely to lose their job in the next three months because of the coronavirus crisis, new research by Shelter reveals.
The polling, which was carried out by YouGov shortly after the government announced its employee retention scheme, shows almost one in four renters (24%) have already seen their incomes fall, or lost their jobs, as a result of the pandemic.
An estimated two million renters (23%) say losing their job will leave them immediately unable to pay their rent.
The housing charity is warning a growing number of people will need to rely on welfare benefits for the first time to cover their basic costs.
950,000 new claims for Universal Credit were made in the last two weeks alone – a tenfold increase.
Shelter is arguing current Universal Credit rates are still too low, despite a recent increase, to stop people falling massively behind on their rent.
The housing element of Universal Credit only covers the lowest third of market rents in an area, meaning those paying average rents will face a large shortfall.
For families in a two-bedroom home, the shortfall is as high as £400 a month outside of London, and up to £1,227 in the capital.
To prevent spiralling levels of debt, poverty and needless evictions further down the line, the charity wants the government to increase housing benefit, so it covers the average cost of local rents.
It says this emergency measure is essential to help people through the financial shock caused by the virus.
Polly Neate, chief executive at Shelter, said:
“The government has rightly suspended evictions until June, so no one has to face homelessness in the middle of this pandemic.
“But millions of renters will be in dire straits further down the line without more government support.
“As renters lose their jobs and see their incomes hit, many will have to rely on the welfare safety net for the first time.
“Our services are already hearing from families in homes they could comfortably afford under normal circumstances, who are now in serious financial difficulty.
“We’re facing an onslaught of people suddenly unable to afford their rent, at a time when people need to stay put and cannot safely move to a cheaper home.
“To avoid spiralling debt and needless evictions once the ban lifts, the government must increase the housing element of Universal Credit so that it covers the average cost of local rents.”
498 private renters took part on the survey.
For once, Shelter appear to be fighting a cause which doesn’t involve ‘landlord bashing’!
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But no change in their highly unprofessional use of statistics extrapolation of circa 500 suspect opinions to 1.7 million. Mind you probably working from a government handbook
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The consequences of the Government’s handling of the COVID-19 situation, have been dire…and will wreak devastation in the medium/long term.
An interview by Lord Sumption, recorded several weeks ago, for me, hits the nail on the head in terms of the grave mistake (IMHO) our Government has made by essentially closing the economy down…with one memorable phrase…
“We must be careful that the cure isn’t worse than the disease…”
I suspect that it is, and will show itself to be…
Wishing you all well in these curious times.
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Your like the press, so what is the answer?
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I don’t believe I am “like the press”…the press appears to have (for the most part) sought to support the idea that an economic “shut down” is the best way forward…which is entirely contrary to my core belief on the subject.
What is the answer?
There is no one answer, there are many options/answers available…however, I do not believe that committing economic Hara Kiri, is in any way close to the best option (or should have ever been considered as an option!).
The article above states a potentially shocking unemployment figure and represents no small segment of the economy…the knock on effects of which will be grave.
During last year’s flu season, the official stats for deaths, a result of the common flu strains was sadly 17,000. It begs the question why this received next to ZERO airtime last year…yet, now we are bombarded with fear and the threat of death.
It begs the question why now, our Government (and a large proportion of the population) have sought to engage in nothing short of a grossly hysterical, socially and financially irresponsible, course of action. This will render many millions of people without income, and many millions more, under an increasing mountain debt.
Perhaps neither of us are medically qualified, however the application of reasoned thought and logic (as well as accurate research) requires no qualification other than time and effort…
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“It begs the question why now, our Government (and a large proportion of the population) have sought to engage in nothing short of a grossly hysterical, …”
Because its fed by the media and press. They need to report, but so much is geared towards negative sensualisation, a trend they have adopted and gotten worse in recent years. Instead of reporting, they put their own personal agenda and spin on their approach. As to Government being hysterical … you got that one wrong big time.
” …. economic “shut down” is the best way forward…which is entirely contrary to my core belief on the subject”.
I think it has set in with just about everyone in the country and around the world that they did not want to do it, but is a necessity or there would be even more deaths. OK so what is your answer now you have an advantage of hindsight ? but you have already answered that question “There is no one answer ……….”.
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Opinions are what they are…as you seem to be so sure of the position (and ignoring the ever so slightly sarcastic/antagonistic tone of your questioning), let’s leave it as a difference of opinion.
Have a great day!
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You are the one who waded in attacking government with your posts. All I have asked is if you are so opinionated on the subject, what is the answer or are you just another person who likes to have a moan how you think things shouldn’t be done but no answer as to how they should be.
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On the contrary, I have very clear ideas on what is happening, and how things ‘should be done’…I simply chose not to share them, on this platform/forum…
On the basis of your comments, you seem to be supportive of the Government’s measures, therefore I’m not sure why my comments seem to have incensed you so. Perhaps, I’m one of those people who likes to have a moan…a difficult debate to have, as pointing such a matter out, to someone…it requires a degree of having a ‘moan’ yourself 😉
As I said, have a great day.
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You make a statement that is nothing but negative, not constructive and of no help. Clearly you are having as you suggest a ‘moan’ which can only be for your self gratification. Now you would have us believe you know better than the teams of experts advising government!!!! Not forgetting the devolved powers in Scotland and Wales, with opposition party support agree with the government AND other nations globaly are doing the same.
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Unprecedented Government aid is scheduled for 3 months, not six weeks close down. Regrettably not for all and many who are getting it should be thankful they are not in an even bigger mess. No doubt there will be some casualties long term but all this speculating, crystal ball job isn’t helping anyone. Very difficult times which frankly every country is struggling to tackle. The majority will return to work after the paid holiday ends as the market is still there for their use, people are not going to suddenly stop using all those things in life that makes the world go around when things return to normal. Our industry for example …….. are you telling me people will not want the idea to buy and sell or rent in the future?
The virus is in control, all we can do is fire fight the ever changing scenarios. If only there was a crystal ball that worked.
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Sing it with me: “It’s the end of buy to let as we know it, and I feel …. “
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I think you may be a little late to come on song…
The BTL/PRS has been in the process of being actively dismantled for some years now…
Keep up Mr Wilson!
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Where’s Walley? Seems to changed his name!
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“…new research by Shelter reveals.”
Sorry – stopped reading at that point.
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