Supporting landlords with tenant arrears

A new report published by the NRLA shows that, by the Government’s own admission, the proportion of private renters in arrears tripled in the period from 2019/20 to the end of 2020 from 3% to 9%. With furlough drawing to close at the end of September, alongside the proposed £20 a week cut to Universal Credit and a continued freeze to housing benefit support, many more tenants are likely to accrue unsustainable debts.

The NRLA is calling on the Chancellor to develop an interest free, government guaranteed hardship loan to support the majority of tenants with Covid related rent debts who are not eligible for benefit support. This scheme would help these tenants to pay off their rent debts and would follow the introduction of similar schemes in Scotland and Wales. More broadly, it is calling on the Government to scrap plans to cut Universal Credit payments to avoid potentially devastating consequences for tenants across the country.

These are extremely weighty issues to tackle. Many people across the UK continue to deal with some degree of financial fallout from the pandemic. As we see a slow return to ‘normal’ life, it’s vital not to forget those who may still be suffering or clawing their way back out of a financial hole. The NRLA have the rights of landlords at heart, and it’s good to see its voice being used to argue that landlords, as well as tenants, need support and cannot be expected simply to deal with non-payment of arrears.

Let’s be honest, the wellbeing of landlords has not always appeared as high on the government’s agenda as it arguably should, but the value attached to maintaining a healthy private rented sector certainly should be. Granted, the post-pandemic economic balancing act would be a tough ask for any government and the sheer volume of activity in the residential housing market and the BTL sector over the past 12 to 18 months mean that the needs of some landlords could continue to be overlooked.

As advisers, there is only so much we can do. However, safe in the knowledge that all landlords can benefit from advice when it comes to BTL borrowing, refinancing or evaluating their options in the current market, we need to remain as proactive as possible in the support we offer. Lenders are doing their bit via some highly competitive deals and favourable criteria to offer some landlords a little sanctuary but the brunt of this support does lay at the hands of the government. Moving forward, let’s hope that it doesn’t shun the needs of those landlords and tenants who are still in desperate need of help and that positive measures can be put in place to assist them in this journey.