The number of families made homeless after being evicted to be left behind for rent could triple if the government didn’t stop a growing debt crisis, activists warn.
It is estimated that over half a million private homes for rent in England are lagging behind, Generation Rent said.
This includes students, non-UK citizens without recourse to public funds (NRPF) and those whose rent is higher than the local housing allowance (LHA).
The government said evictions could not be carried out before the end of August to protect renters during the coronavirus epidemic.
About 4% of private renters in England were late in 2016-17, according to the English Housing Survey.
And previous research on shelters suggests that around 2% of private renters are late at any given time.
But polls have suggested an increase of varying degrees during the blockade, with the Foundation Foundation finding that 13% of private tenants in the UK are late on payments.
If the percentage of tenants in arrears has tripled from pre-pandemic levels, and evictions are increasing at the same rate for this reason, about 45,000 families may become homeless, estimate Generation Rent.
This is based on the fact that 15,030 private rental households have become homeless due to eviction from rental arrears in 2019, according to data from the Ministry of Housing, Communities and Local Government (MHCLG).
The organization estimates that it could cost 117 million pounds more in temporary accommodation and other support.
Shelter told MPs Monday that numerous polls suggest that between 5 and 10% of private renters are currently lagging behind.
And the National Residential Landlords Association said its research suggests 4 to 5 percent.
The organization said Generation Rent “unnecessarily scares tenants” and its analysis “erroneously assumes that the owners do nothing to support tenants to stay in their homes.”
Generation Rent asks the government to launch a “Coronavirus house conservation system”, which cancels the rent arrears not covered by the social security system, guaranteeing the owners’ income up to 80% of the rent.
That would cost £ 750 million a quarter, he estimates.
Generation Rent director Alicia Kennedy said, “There is a debt debt crisis and tenants run the risk of losing their homes. The government has already stepped in to prevent businesses from falling apart and the owners of Mortgage Loans to Lose Their Homes They must give the same protections to tenants who still have to lose their homes or go bankrupt because of the rent arrears.
“There are too many holes in the welfare system and our package of measures would ensure that no tenant faces indigence or becomes homeless because of Covid-19.
“But with the contraction of the economy, the government shouldn’t be supporting rent levels when the economy was strong.
“That’s why we propose that owners are only guaranteed up to 80% of their rent.”
It also calls for the removal of the ceiling, ending the five-week wait for a first payment of the universal credit and the suspension of the NRPF policy.
Chris Norris, NRLA’s director of politics, said: “Families who stay behind with their rent during the blockade should not be forced to unnecessarily fear eviction. Rather, owners and tenants should be encouraged to work together to find alternative solutions where possible.
“Our members have constantly told us during this crisis that they are doing all they can to support tenants to stay in their homes. Although around 30% of landowners face some level of financial difficulty, they have shown that supporting viable leases is in everyone’s interest.
“Having said that, we support calls to increase the finances available to tenants who are struggling to pay the rent, especially when the furlough regime starts to slow down. This should include ensuring that benefits cover the cost of rents.”