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750,000 families behind with housing payments 18/02/2021 Labelled as Rent, Finance, Tenants

Research published by the Resolution Foundation suggests that some 750,000 families are behind with their housing payments.

 

The research examines how families have managed their housing costs over the Covid-19 period and finds that although the Government has done much to support families over the past year (not least via the furlough scheme and the £20 per week uplift to Universal Credit), the financial strain has grown as the pandemic has worn on. Using new data from a representative survey of UK working-age adults, the report shows that housing arrears have grown steadily over the crisis, and that renters are at the sharp end when it comes to housing cost pressures.

 

Key findings of the report are:

 

  • 9 per cent of families in the social rented sector were behind with their housing payments in January 2021, alongside 6 per cent of those renting privately and 2 per cent of mortgaged homeowners.
  • These percentages translate into significant numbers: over 750,000 families were behind with their housing payments in January 2021, 300,000 of which contained dependent children.
  • Close to one-quarter (24 per cent) of private renters have seen their earnings fall during the last ten months, compared to one-in-six (16 per cent) working-age adults with a mortgage
  • The survey shows that twice as many privately-renting families entered the pandemic with no savings compared to mortgaged homeowners (22 per cent and 11 per cent respectively)
  • Despite widespread calls for forbearance in the face of the Covid-19 shock, only 3 per cent of private renting families have been able to negotiate a lower rent over the last ten months (a further 5 per cent have been refused), compared to one-in-ten (10 per cent) families with a mortgage who have received a mortgage holiday
  • More than half (56 per cent) of private renter families with arrears are not in receipt of benefits, leaving them ineligible for a Discretionary Housing Payment.

 

The Resolution Foundation make several recommendations to Government to:

 

  • Continue to support those on the lowest incomes by retaining the UC uplift of £20 per week beyond the end of March 2021.
  • Fund the Discretionary Housing Payment budget to at least the same level as 2020-21, and recognising the exceptional circumstances of the last year, allow councils to roll-over any DHP underspend to 2021-22.
  • Follow the example of Scotland and Wales and introduce a tenant loan scheme in England for those who have built up housing debt over the pandemic period.
  • Introduce a pre-action protocol for private landlords requiring them to take robust action to negotiate a repayment plan with indebted tenants before proceeding to court

 

A copy of the full report "Getting Ahead on Falling Behind: Tackling the UK's building arrears crisis" is available to download from the Resolution Foundation website.

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