Major debt advice charities StepChange, Money Advice Trust, Citizens Advice, and Christians Against Poverty, alongside the Law Centres Network, yesterday wrote to DLUHC Secretary of State Michael Gove urging him to prioritise the Renters (Reform) Bill in this parliamentary session and calling for stronger protections in the Bill for private renters experiencing financial difficulty.
New polling by YouGov for StepChange Debt Charity has revealed private renters are twice as likely to be in problem debt as the average person, while more than half – 53% – of private renters say they have found it difficult to keep up with bills and credit commitments in the past few months.
Record average private rents across the country are driving low financial resilience among private tenants, many of whom match the financial profile of social tenants and have additional vulnerabilities like ill-health but are unable to access the severely limited supply of socially rented homes.
The Bill gives landlords an automatic right to evict private tenants in two months or more of rent arrears without offering any support or seeking to agree a repayment plan.
Rent arrears is the most common reason tenancies are ended by landlords and estate agents, most often through section 21 notices. Yet rather than offer more protection for those struggling to keep up with their rent, the Renters (Reform) Bill introduces an additional ‘repeat arrears’ ground.
The charities are calling for a new Tenancy Support Programme, which would mirror the Pre-Action Protocol that exists for social tenants in rent arrears. This would introduce reasonable steps private landlords must take to support tenants in financial difficulty to sustain tenancies wherever possible, including referring them to benefits advice and seeking to agree an affordable repayment plan for arrears. These steps would be supported by giving judges discretion to suspend eviction proceedings where these steps have not been taken.
Richard Lane, chief client officer at StepChange Debt Charity, said: “We’re currently experiencing a crisis of housing affordability which is leaving millions of private renters on the cusp of falling into problem debt simply because they do not have the income to cover exorbitant rents alongside rising essential costs.
“While a mortgage holder or social tenant has the security of knowing that their lender or housing provider will follow a process of engagement and support if they fall into a difficult spot with their finances, private renters are not afforded the same protections.
“At StepChange we see far too many financially vulnerable private renters who should be in socially rented homes, with living costs alone forcing them to resort to borrowing. It’s essential that they’re provided with dignity and security to stay in their homes should they be faced with a life shock that impacts their finances.”
Jane Tully, acting deputy chief executive at the Money Advice Trust, the charity that runs National Debtline, commented: “Reform of the private rental sector is long overdue, and the Government’s intention to deliver greater security for tenants is welcome. Proposals as they currently stand, however, do not get close to providing the protections needed for private renters.
“At National Debtline we hear the lengths people go to protect their tenancy, including going without essentials in order to prioritise their rent. With rents rising and many household budgets at breaking point, it is only right that reasonable steps should be put in place to sustain tenancies.
“Changes to Ground 8A are needed now to reduce the threat of unnecessary evictions and to bring safeguards in this sector in-line with those granted to mortgage holders and social tenants.”
Landlords are already used as interest free lenders, the system takes months to evict a tenant with arrears, often several thousands behind by the time they make it to court. The Government have taxed the income to the pips, landlords are not charities, if they want to help so much, they should put their money where their mouth is an offer interest free loans.
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Maybe the “Christians against Poverty” should look at themselves and utilise properly the £1bn they have for virtue signalling about 200 years ago slavery. Charities have caused enough damage to the industry, it’s time they kept quiet.
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It is true. Why aren’t these charities offering a helping hand? I feel like selling up and emigrating to a truly ‘free market’ country. Sigh.
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‘Rising bills and credit commitments’ … so the landlord needs to do more by taking less. Pretty much sums it up.
Do any of these charities realise that landlords are people too?
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Every tenant in difficulties is home blocking 30 potential tenants who are not in financial difficulties.
Being a tenant should not absolve anyone from the stresses and challenges life throws at all of us from time to time. There is something wrong with the housing strategy where a social tenant can be evicted for £75 rent arrears because a housing association had a shortage of 3 bedroom accommodation, other families are living in hotel rooms with only a cooker and a microwave to prepare meals for themselves and children and then charities are pleading the case for there to be less pressure on some tenants at the unexplained obligation and expense of landlords
When I’ve tried to explain the practical pressure of the PRS and SRS to MP’s, party politics is seemingly more important than any practical solution. I will repeat again , that needs to change.
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What a really positive ADMISSION by the so-called tenant campaigners, that Sec 21 is # NOT a No fault eviction, but often used for Bad debtors
( who charities would like to be paid for by other private individuals ! – W.T.F. )
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I was ‘faced with a life shock’ that impacted my finances when my tenant stopped paying rent just before the first lockdown, and I caught covid really badly, which forced me to retire.
I wasn’t able to evict him for 15 months, at a cost of £20k+! Meanwhile, he was committing antisocial behavior, vile criminal behaviour, receiving every covid grant available, plus receiving housing benefit [which he had denied]. I didn’t get a penny back… and he ended up living rent-free yet again… in prison!
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Here we go again.
Tenant is living beyond their means and the landlord is responsible. What happens when the landlord is the one sitting on the other side of the desk to them because their tenant has put them in debt???
Life is this simple, have what you can afford and cut your cloth to suit your means.
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“living the champagne lifestyle on beer wages” is how my nan always termed it, and it’s true. If you don’t have the money, you don’t buy it. I take advantage of ‘interest free’ purchases, I’ve just bought a dishwasher, and I have the money sitting in my account earning interest for me until I pay it off in a few months. Not much interest, but its something… Live according to your income where possible.
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I’d argue that most (sensible) landlords and their agents will always try to find an alternate solution than eviction through the courts. It’s costly and slow. Let’s not forget that a tenant must be in 2 months’ arrears before a S8 notice can be served and must still be in 2+ months’ arrears at the point of the hearing- a hearing they will have likely had to wait around 6 months for- and this wait time WILL increase when S21 is removed. This already places a huge amount of pressure on Landlords to survive this process and, naturally, encourages discussions around alternate solutions- be that writing off debt, a payment plan, a rent reduction, access to benefits or other financial support….
These charities need to understand that this constant application of pressure on private landlords will only make things worse for tenants. Less available stock. more stringent qualifying criteria and landlords forced to act in a more ‘officious’ manner at all times.
How about if these charities used some of their funds to underwrite an insurance policy to enable low income or financially struggling tenants to still meet their rental obligations? Wouldn’t that be a great solution, rather than the expectation that cost after cost after cost should be met by landlords.
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Property ownership is being steadily eroded in the name of “fairness”. There is a name for that.
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Perhaps, after paying one month’s rent, tenants should be allowed to stay ad infinitum with landlords paying all bills, repairs etc to keep the occupants happy? Is this what these so-called charities would prefer?
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Indeed, they are less like charities, more like pressure groups with an insatiable political agenda. Most landlords would be afraid to appear uncharitable, and governments are happy to signal their virtue in order to hold on to votes.
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Don’t pay council tax or income tax debt etc. to the state, and you will be sent to prison. Don’t pay contracted debt to a private property owner, and the state should protect you from having to pay it, while the property owner assumes the duty of the state in having to house you for good measure? You can’t have it both ways – debt needs to be paid, or the premise of the state has failed.
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