Urgent action needed to address mounting tenant debt

Urgent action needed to address mounting tenant debt

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A lot more needs to be done to financially support landlords and renters during the existing Covid-19 pandemic, according to Housing Hand. 

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UK rent guarantor service is concerned that the challenges in the private rented sector are only going to intensify as the coronavirus crisis continues to put a strain on the economy.

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The company wants to see the government step in and solve the issue of increasing tenant debt, and is proposing a simple rent debt loan solution that would enable landlords to avoid evicting non-paying tenants.

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Terry Mason, group operations director, Housing Hand said: “The government cannot use private accommodation providers to bail out the rent arrears problem created by COVID-19.

“Action needs to be taken now, before the second wave builds, to assure both tenants and landlords that there is another option open to them aside from eviction, which in most cases both parties are keen to avoid.”

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Given that the private rental sector is vital to the UK’s housing makeup, Jeremy Robinson, group managing director, Housing Hand, agrees that it is important that if tenants genuinely cannot pay their rent, the government must step in and support them. 

He commented: “Private accommodation providers cannot be expected to provide homes without being paid. In many instances, rent covers the landlord’s mortgage and maintenance costs, meaning that non-payment puts both the tenant and the landlord at risk. 

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“We need a solution in place before the second wave really hits and delivers a huge economic as well as health impact.”

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