Landlords hit out at government ‘failing to get a grip on arrears’

The main landlords’ trade body has made a blistering attack on the government of one of the UK nations, asking it to get a grip on arrears.

The National Residential Landlords Association says the Welsh Government should improve financial support and end restrictions that have plunged tenants and landlords into debt.

The association, which represents over 90,000 members across England and Wales, claims the current arrangements in Wales are counter-productive and not in the wider interests of either landlords or tenants.

As a result, the NRLA is urgently calling on the Welsh Government to:

• Reform of the eviction ban: The current eviction ban in Wales came into effect on December 11 and is set to end on March 31. It includes exemptions for cases citing anti-social behaviour, trespass, and abandonment. Unlike in England, no such exemption exists for extreme rent arrears. Landlords must be allowed to end failed tenancies, especially where debt began to accrue before the first lockdown;
• Widen access to Tenancy Saver Loans: The Welsh Government launched a Tenancy Saver Loan scheme last autumn to help tenants cover their arrears giving five years to repay their credit union lender. However, it is not open to those with unable to meet strict “creditworthiness” criteria, thereby excluding those most at need.
• Provide an exit strategy: Publish a clear timetable for transitioning from emergency measures, including an exit from the extended notice periods that were introduced in Spring 2020.

The NRLA insists it is supportive of the tenancy saver loan scheme, but it wants the Cardiff administration to lower the eligibility threshold for the loan scheme so “creditworthiness” issues are considered within the context of the pandemic. 

The association is also asking for the one per cent interest rate on the loan to be scrapped, with the credit unions compensated from the funding pot.

“The Welsh Government needs to get a grip of the rent debt crisis that is engulfing renters and landlords. Access to the Tenancy Saver Loan scheme must be widened to include more renters in need” says association chief executive Ben Beadle.

The association is also asking for the one per cent interest rate on the loan to be scrapped, with the credit unions compensated from the funding pot.

“The Welsh Government needs to get a grip of the rent debt crisis that is engulfing renters and landlords. Access to the Tenancy Saver Loan scheme must be widened to include more renters in need” says association chief executive Ben Beadle.

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