450,000 families ‘in Rent Arrears due to Covid’

Rent Arrears affecting over 450,000 families in the UK

The statistic for Rent Arrears causes is according to the Resolution Foundation, almost half a million UK families are thought to have fallen behind on rent due to the coronavirus crisis.

It said more than 750,000 were behind last month on housing expenses.

That’s an increase of 450,000 compared with January 2020.

“Despite widespread calls for forbearance in the face of the Covid-19 shock, just 3 percent of private renting families have been able to negotiate a lower rent over the last 10 months,” the think tank said in a report.

In the meantime, one in 20 private renters in the UK said rent reductions had been refused.


Lindsay Judge, research director, said that many had taken “huge hits” to their earnings and had “limited savings” to fall back on.

“To make matters worse, 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.”


As a result of the crisis, nearly one in four private renters saw their income decline, the body said.


And an easing of lockdown restrictions was not expected to be enough to solve their problems.

For the spring, both benefit cuts and the end of the furlough are penciled in, either of which will further strain family incomes,”Both benefit cuts and the end of furlough are pencilled in for the spring, either of which will strain family incomes further,”

“Likewise, unemployment looks set to rise, rather than fall, through 2021, potentially driving up arrears further still.”


‘Rent-arrears crisis’

The Resolution Foundation said that landlords in England were forbidden to evict tenants until at least the end of March, offering “some security” by preventing families under the greatest strain from becoming homeless during the pandemic.

Housing is a devolved issue, and until the end of March, Wales and Scotland have extended their bans as well.

In Northern Ireland, before moving to eviction proceedings, landlords are required to give tenants 12 weeks’ notice to quit. In anticipation of the coronavirus pandemic’s second wave, the rules were extended to March.

But the Resolution Foundation also wants the government to offer tenants loans to ease a “rent-arrears crisis” that is expected to deteriorate in the coming months.

Meera Chindooroy, of the National Association of Residential Landlords, said loans would help address the rent debts owed to property owners.

“Simply banning repossessions is doing nothing to address this underlying problem which renters and landlords are struggling to cope with,” she said.

“Robust protections put in place by the government remain – with the vast majority of renters still subject to six months’ notice periods, while the ban on bailiff evictions in all but the most serious circumstances will stay in place until at least 31 March.”Robust government protections remain in place – with the vast majority of renters still subject to six months’ notice periods, although the ban on bailiff evictions will remain in place until at least 31 March in all but the most serious circumstances.



Information included in this Blog was obtained and rephrased from the offical bbc website, you can find the original articile here.