The future of the post Covid rental industry has become a serious topic after the all-party Housing Communities and Local Government Committee has released a 53 page report stating:
“Helping tenants pay their rent arrears is the simplest and most straightforward way to avoid evictions and help landlords receive income.”
Back in January the Resolution Foundation revealed that more than 750,000 had fallen behind on housing costs. When this is compared to the year before you can see a rise of 450,000, creating a never seen before problem for Tenants and Landlords in an ever expanding void of debt.
We have looked in the past at the relief packages available in Wales and Scotland, with the committee providing an estimated cost for the England relief package potentially ranging from £200m to £300m. A point made by the Clive Betts lead committee did highlight the significant saving on homelessness assistance if the scheme could prevent mass evictions.
With the voices of MP’s being added to the outcry of landlords who have mounting debt of their own thought unpaid rent, this is the first direct light being shed on the issue which until now has received general support through universal credit options.
The Chief Executive of the NRLAssociation, Ben Beadle is very supportive of the committees forward movement:
“We wholeheartedly support the Committee’s call for action to support tenants to repay rent arrears to be a top priority, including consideration of making payments direct to landlords. As the report notes, this would be the best way to sustain tenancies and help landlords receive income.”
One of the key points Landlords will be looking at is the direct payments to landlords, providing reassurance that funds from the scheme will end up where it is meant to, in the pockets of Landlords.
As the discussions continue we will endeavour to update you on any developments.
Written by Toby Dawson
