This month the Chancellor announced his Spring Budget, and despite promises to continue supporting those impacted by the pandemic, there was no sign of support for tenants to help them to clear mounting rent arrears and prevent evictions.
Rishi Sunak spoken of turning “generation rent into generation buy” as he announced five per cent mortgages and a stamp duty holiday extension, but how does that help those individuals who will be plagued by a poor credit rating and rising debt as they struggle to stay on top of rent payments?
According to the NRLA (National Residential Landlords Association) there is an estimated 840,000 renters now in arrears, and that is before the furlough scheme comes to an end.
Like many other campaigners and charities, we are extremely concerned about the level of homelessness that could be on the horizon if nothing is done to offer tenants financial support to clear their debt. The ban on evictions will not last forever, and landlords cannot be expected to continue shouldering the debt of tenants when many have their own financial struggles.
There was also no mention of investment is social housing and the £20 uplift of Universal Credit has only been extended for a further six months. We know that many tenants have the long-term aspiration of home ownership but how will that ever be possible when the pandemic has left so many peddling backwards?
Measures put in place by the Government as a result of the Coronavirus outbreak, such as a blanket ban on evictions, has been highly effective in preventing new homelessness in the last 12 months. However, a study, “Homelessness Monitor: England 2021”, carried out by Heriot-Watt University in Edinburgh, says that once these measures end the number of people without a home is likely to rise. Some 94 per cent of councils said they expected an increase in people being made homeless as a result of being evicted from private accommodation. Separate figures show that some 250,000 people are already living in temporary accommodation.
The pandemic means that people never previously at risk of homelessness may be facing such a threat. Caridon Foundation remains committed to helping those in need find suitable accommodation and we are doing all we can to work with local authorities and support those in this position. If you are worried about mounting arrears, loss of employment and possible homelessness, we are here to support you. Call 0203 897 2420.