Propertymark has joined forces with other sector organisations and written to the minister for Rough Sleeping and Housing, Eddie Hughes, to emphasise the sector’s growing concerns over Covid-related rent arrears, urging the government to come forward with a package of emergency financial support.

Propertymark argues that urgent action is needed because 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.

To date, measures from the government have provided some short-term relief but have not done enough to protect renters going forward.

Rental debts built up during pandemic now threaten a two-speed recovery, with millions of renters facing a lost future from long-term debt problems, and the threat of homelessness and eviction.

As support tapers down, Propertymark, Generation Rent, Shelter, Money Advice Trust, NRLA and Step Change are calling on the government to take urgent action to sustain tenancies and protect renters. Action on Covid-19 rent debts would protect renters from negative credit ratings and keep renters in their homes, whilst ensuring rental debt does not risk families being locked out of future homes.

The cross-sector campaign reiterates calls for the introduction of an emergency financial package of grants and no-interest loans to help tenants to clear Covid-related rent arrears, minimizing the impact on agents and landlord feeling the fallout.

The organisations believe that grants should be targeted at the worst-affected tenants, with a wider programme of no-interest loans for others, such as those who have been furloughed. This would work with the dynamics of recovery, with loans repaid as renters regain their financial position.

By providing an orderly way to wind down Covid-19 rent debts, proposals would give hundreds of thousands of renters a bridge to recovery and help for renters to keep their homes.

Timothy Douglas, Propertymark’s policy and campaigns manager, said: “With the furlough scheme ending in September, the UK government must build a bridge to recovery and provide a dedicated financial support package for the sector.

“While measures through the welfare system have been welcome, more needs to be done to alleviate COVID-related arrears and remove the risk of eviction. Propertymark has added our support to the cross-sector campaign, representing the voice of our membership.”