Coronavirus: Private renters facing ‘tsunami of evictions’ once lockdown ends, charity warns

Thousands struggling to meet costs of rent after losing jobs, says Shelter

Thousands of private renters who have been forced out of work are facing a “tsunami of evictions” once the coronavirus lockdown is lifted, a housing and homelessness charity has warned.

Shelter says many of the two million people applying for universal credit, which includes the local housing allowance, are still struggling to meet the costs of rent.

With people unable to safely move to cheaper accommodation, leaving them vulnerable to mounting debt and rent arrears, the charity is calling on the government to further increase housing benefits to match 50 per cent of the average rent in an area.

At the moment, payments only cover the lowest third of market rents in an area, meaning thousands are facing a large shortfall. For families in a two-bedroom home, the shortfall is as high as £400 a month outside of London, and up to £1,227 in the capital.

Shelter says that those relying on benefits must find an estimated £13m a week in total to keep up with their rent payments.

The government has suspended evictions for the duration of the crisis, but thousands could be forced out of their homes when the lockdown ends.

Polly Neate, chief executive at Shelter, has warned of a “tsunami of evictions” amid the “serious financial difficulty” that people across the country are now facing.

“As renters lose their jobs and see their incomes hit, many will have to rely on the welfare safety net for the first time,” she said.

“Our services are already hearing from families in homes they could comfortably afford under normal circumstances, who are now in serious financial difficulty.

“We’re facing an onslaught of people suddenly unable to afford their rent, at a time when people need to stay put and cannot safely move to a cheaper home.

“To avoid spiralling debt and needless evictions once the ban lifts, the government must increase the housing element of universal credit so that it covers the average cost of local rents.”

Emma and her partner, who live in Manchester, have both lost their jobs as a result of the pandemic and, along with thousands of others across the country, are now struggling to pay rent.

“Both myself and my partner have now lost our income,” she said. “The landlord has offered a rent deferral but while we can pay we will, otherwise we will end up in thousands of pounds of debt over the next few months. Even with the deferral we’ll have to pay it back at some point anyway.

“Nobody knows when we will be able to earn again, so we are stuck. We have just got to pare everything back and keep our heads above water if we can. I have applied for UC however the first payment isn’t available until 13 May, and even then, I don’t know if it will be enough to keep paying our rent.”

Ms Neate, who delivered a 43,000-strong petition to Downing Street on Thursday, calling on chancellor Rishi Sunak to take action, has said that “millions of renters will be in dire straits further down the line without more government support”.

Last month, analysis by Shelter revealed that almost one in five private renters in England – an estimated 1.7 million adults – expect to lose their job in the next three months due to the crisis.

More recently, research from the District Councils Network suggested that more than 486,242 households are spending over half their income on private rented housing.

Communities secretary Robert Jenrick has said the government will ensure councils “have the resources that they need to carry out the absolutely critical functions that they are playing in our national response to coronavirus”.