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Landlords back call for fund to help tenants with arrears

Landlords are today backing a call by the Resolution Foundation think tank for tenant hardship loans for renters impacted by the COVID-19 pandemic.

Meera Chindooroy, deputy policy director for the National Residential Landlords Association, says: “Simply banning repossessions is doing nothing to address this underlying problem which renters and landlords are struggling to cope with.

“The Chancellor needs to develop an urgent financial package as called for by the Resolution Foundation to pay off arrears since lockdown measures started last year. Only this will sustain tenancies and prevent renters facing the consequence of damaged credit scores.”


The foundation conducted a survey of 6,389 adults in late January, and accepts that some support for renters has come via the temporary boost to Local Housing Allowance introduced last April, and Discretionary Housing Payments.

But it says: “DHPs are not reaching a large number of those with arrears. More than half of private renter families with arrears are not currently in receipt of Universal Credit or Housing Benefit, and are therefore ineligible for payments.”

It concedes that the ongoing evictions ban has offered some security, preventing families under the most strain from falling into homelessness during the pandemic period.

But it adds: “Without further government intervention however, it warns that the rent arrears crisis will worsen in the months ahead – leading to an increased number of court possessions proceedings, which tend to be lengthy, difficult, and upsetting for tenants and landlords alike” it continues.

It demands a boost to the DHP system, so that it can reach more families in need, and a tenant loan system for England, through which the government would directly support families behind on their housing payments.


“Renters have been particularly badly hit. Many have taken huge hits to their earnings and have limited savings …  measures that could ease the pressure, such as Discretionary Housing Payments from local authorities and negotiated rent reductions from landlords, are not getting through to those that need them … This situation will worsen without significant government intervention” insists Lindsay Judge, research director at the foundation.

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  • PossessionFriendUK PossessionFriend

    Why is it nobody can see what the Govt's Plan is ?
    MHCLG are Not going to introduce Loans at huge cost of approx £ 300 M +
    They have other idea's, its off-loading the liability of the outstanding rent onto Landlords, - Permanently, wiping the slate clean for Tenants. This is not a big step for the Gov, they have been deferring tenants outstanding rent onto Landlords for the last year since the pandemic began.

    On 2nd of May this year, the Debt Breathing Space Moratorium Regs come into force, enacted last August ( Yes, they've been scheming this for some time ) Simply put anyone with an unmanageable debt and without the resources to pay it off [ conservative estimates are half a million ) will approach an FCA accredited Debt Advisor who will apply for a 2 month Hold on any claim of their debt ( Breathing Space ) whilst a plan to write off most if not All that debt is formulated, IVA, DRO or Bankruptcy.
    Yet the industry has not WOKEn up to this !

    Legal commentators describe the legislation clinically and benignly without deference to the consequences for Creditors.
    Some of the rebuttals to my concerns have been, 'the Debt Advisors won't be giving these moratoriums out easily' - why not I ask, its what their role is, to get people out of debt, - duh

  • icon

    You are right they will all get them. They will also be advised to up it to the 12 months premium version ‘mental moratorium’ by having an hours therapy


    “Hands up anybody who’s felt a little down from what’s been happening recently?”


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