A new poll from the StepChange Debt Charity claims that over a third of private renters have used some form of credit to afford their rent, compares to only a fifth of mortgage holders.
Some 27 per cent of private renters have used savings in order to afford rent in the past 12 months. This has increased by seven per cent just from May.
A quarter of private renters have rationed the amount of heating, electricity or water to afford rent in the past 12 months. This has increased from 20 per cent in May.
And just over half of private renters say they’ve found it difficult to keep up with bills and credit commitments in the past few months, compared to one third of the general population.
Now the charity is calling for rent arrears under the Housing Act to be made a discretionary rather than mandatory ground for eviction, allowing courts to consider a tenant’s individual circumstances when they fall into rent arrears and to intervene where landlords have not taken sufficient steps to support them.
It also wants the introduction of a new Pre-Action Protocol for possession claims by private landlords setting out “reasonable steps landlords should take to support tenants in arrears” before making a possession claim, such as affordable repayment plans.
Richard Lane, Director of External Affairs at StepChange Debt Charity, says: “Amid a crisis of housing affordability that continues to intensify, tenants in the private rented sector remain among the groups with the least protection from problem debt and destitution.
“While we hope the government will follow through with its commitment to strengthen protections for PRS tenants through the Renters (Reform) Bill, especially through the end to Section 21 evictions, these proposed reforms alone will fail to prevent the most financially vulnerable tenants from losing their homes.
“Having mandatory protections in the PRS that mirror what already exists for social housing tenants and mortgagers would create a fairer and more sustainable system for private renters, which is especially vital as the cost of living crisis rages on.
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Are they for real?
How about examining why people fall into arrears in the first place. This will be numerous reasons such as being sanctioned by UC for not filling in the online journal to their satisfaction, failing to report a drop in pay or change in circumstances quickly enough, an employer underpaying them, schools demanding ever more expensive styles of shoes are worn or uniform is only to be purchased from the most expensive shop in the area. In some cases it will be because of inappropriate spending choices on drugs, alcohol, gambling, shopping, holidays, etc.
None of that is the landlords fault. Why should the landlord be expected to take any kind of financial hit for something that is totally out of their hands? Perhaps StepChange should set up a loan system for tenants so they could clear their rent arrears and pay the money back in manageable payments.
Well said Jo, they should also look at the cause of rent increases and look to tackle this also.
However, so easy to blame the nasty Landlord's!
Exactly Jo another group of do gooders with no real understanding trying to get on the band wagon to blame landlords
Yes Jo, they completely discount the fact that some tenants simply don't WANT to pay! They get their money: salary or benefits and want to.kerp it all!
The landlord has had no support at all with increasing mortgage costs, unlike homeowners so of course the rent will keep going up, although most landlords I know have been trying very hard not to, as they seem far more in tune with the tenants than some of these organisations or charities!
I've used Credit union as a go-between for people on benefits in the past, where they help.the tenants budget and the money going in is paid out via them, so rent paid. We could do with a system like that for salaried people. Maybe the DPS , TDS or similar could be extended into something like that...
I'm getting pretty tired of being blamed for everything when we're watching prices rise EVERYWHERE, for all of us!
Everyone has rationed gas and electricity use since the prices went so high.
So many Organisations with Charity Status crawling out of the wood work.
How about giving Private landlords Charity Status and we can drop the rent instantly.
Tenants are taxed on their rents and collected by their landlord for the Revenue but they have already paid the tax on their income.
In Ireland if Tenants that have an overseas landlord, the Tenants have to hold back 20% of their rent and pass it straight to the Revenue, then government turns around and says they can’t afford the Rent after they robbed them.
Rishi, just one more small step and scrap THE RENTERS REFORM BILL the definite cause of the Housing Crisis, every man and his dog knows that.
The RRB is only one piece of the jigsaw Michael. It started with the triple attack by Osborne and has just got continually worse since then.
There are tax issues, of course, but the current issue is the Renters Reform legislation and that issue is make or break for the Private Rental Sector. If the legislation means that landlords will lose control of their properties, then landlords will cease letting in a way that is covered by the legislation or they will sell.
Ellie - I think you have made us all fully aware you are unencumbered, aren't personally affected by Section 24 and basically don't give a stuff about the devastation Section 24 is causing. Your personal concern is the RRB because that is the one that will personally impact you.
For those of us who house the majority of tenants Section 24 is here right now and is causing major financial problems. We probably all have concerns about the RRB but for some they're fairly irrelevant fears as Section 24 will have forced them to sell long before the RRB is in place.
I didn't say that I didn't care about tax. You misrepresent what I have said. However, the current issue in Parliament is the Renters Reform Bill.
I am sympathetic about people who are impacted by large interest rate rises, but at the same time I think it is predictable that interest rates have the potential to go up, so you have to consider that when purchasing property.
I specifically did not go ahead with a property purchase in 2019 because I was worried about the potential for rising interest rates. It was a property that was extremely good value and one that I wanted very much.
The Renters Reform legislation will impact ALL landlords and tenants, not only me. About 40% of landlords have no debt or borrowing.
The same witholding rule applies in the UK. I am an overseas landlord and witholding tax has to be paid to the government from rents by the tenant or the agent. You have to apply for an exemption as I did, which is granted if you have a good history with HMRC.
Like Ellie it’s the RRB that’s nr 1 concern. I have large mortgages too. I can pay them down to compensate but I won’t as I fear I may never get my properties back at all with endless long winded unnecessary defences to deal with all at great expense.
They are my properties and I require control. Nothing less. I’m not handing things over to some useless piece of **** who’s on UC, claiming legal aid now to defend, and has every excuse going to be a permanent non paying tenant.
I am not surprised that you feel like that Nick when you went through such an upsetting experience with those tenants.
Like you, I think it is imperative that we retain control of our properties.
The Government introduced Section 24 to push landlords out - the Renters Reform Bill seems to be part of the same agenda, as did needing to reach EPC C. Perhaps the Government is going to change tack because of a potential housing crisis if too many landlords exit the private rental sector at once -and also because too many Conservative voters will stay at home at the next General Election.
I agree Ellie. I strongly believe S21 is a healthy deterrent for tenants to behave. You cannot give too much power to have nots. They will make those that have a misery.
How about the charity pays the landlord up to date and they set up a payment plan with the tenant. That would be a big step forward.
Or do charities just criticise others whilst doing nothing themselves
These so called "charities" should put their money, sorry the public's donations and taxpayers money, where their mouths are. Instead of funding the lavish lifestyles of their CEOs and other executives.
Once a tenant gets into arrears and gets away with it they will always be in arrears, there is only one line of action OUT NOW, evict
Yes there are people that wilfully magpie properties and simply don't pay rent from day one but to tar everyone with the same brush is wrong. People do have situations that are transient and you need work through that with them, not simply rush to boot them out that's why the likes of Generation Rent and Shelter have an audience.
If a tenant has a short term problem, then they can contact the Landlord and most of us can work an agreeable way forward.
Tenant's that do not contact you, without due cause, and then simply do not pay and perhaps ignore your calls, it's evict all the way.
If you need to borrow, then contact a bank. But just stop paying them and see what happens!
I get their intentions are honourable, Step Change do a good job of helping people manage debt, and landlords should and DO generally work with tenants to help them but ultimately most properties have some form of finance on them, and if that can't be met then chances are the Bank will solve the problem leaving the tenant homeless and the landlord with a bad credit record which could then well impact other innocent tenants. If they want to solve the problem, then lobby the government to reverse s24 in return for a discretionary ground on rent arrears less than 6 months.
6 months without any rental income could well cause repossession by mortgage companies.
6 months without paying the deposit mortgage almost certainly would.
If renters realise that they can no lo
John I live in the real world when you give a inch these none payers take a mile booting them out is the only way and make sure other local landlords know who they are this is the only language they understand
Roll Up, Roll Up 🎉🎉 it’s like April 1st early 😂😂
Yet another organisation who has no real clue like shelter.
It doesn't matter what you offer people that don't want to pay, they find any way they can not too, that's why Section 21 is so important!!
And as for cutting back, well haven't we all, because of mortgage increases I have £700 a month extra costs I can't pass on to the tenant, so I've cut back my monthly spend by £500
These crocodile tears like wet liberals don't know what reality looks like they're too busy preaching the moral gospel to do anything of real value
I think Overstep Change should be campaigning for the rights of landlords to also get a payment plan with mortgage companies to run in line with tenants payment plans......
Absolute bunch of idiots..!
I can assure the mortgage company will have no sympathy for a landlord with 6 months rent arrears. Repossession without fail! The tenants won't care, they will just find another fool landlord. A sorry mess implemented by government and the only victim is the landlord.
That's why any changes need to be in law. But kicking everyone out who hits a genuine bad patch is why the likes of Shelter and Generation Rent are getting traction.
I agree with Ellie Edwards in that that RRB is a huge issue for me. I have huge mortgages but S24 is a drop in ocean compared to the RRB and it needs to be put on the back burner forever. I believe it be totally biased against LLs and tenants are encouraged to behave like children with no responsibilities and let the LLs get stressed out, whilst the tenants are allowed to behave arrogantly and irresponsible manner.
Exactly. We are in a period where there are whole industries that have been created out of protecting and therefore protecting the lazy and feckless. Think Shelter etc in housing. Debt charities. Legal Aid lawyers and our own Border Force helping the boat people. Theo world is
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