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TODAY'S OTHER NEWS

Drop rents, Don’t evict! Think-tank says tenants need more protection

A think tank is calling for landlords to consider rent reductions and is also suggesting the return of an eviction ban as Coronavirus leads to expected job losses and reduced income.

The Resolution Foundation’s research director, Lindsay Judge, says: “As lockdown measures continue to ramp up around the UK, high housing costs are making the ongoing economic situation even worse for many families.

“Renters are being particularly badly hit. They are much more likely to have lost their jobs, and close to one-in-eight private renters and over one-in-six social renters are currently unable to cover their housing costs in full. Significant numbers are only managing by cutting other expenditures, drawing down on savings or getting into debt in order to meet their rent.

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“As the furlough scheme comes to an end … policymakers need to ensure the social security system supports struggling families effectively over the coming months, and take urgent action to avoid an increase in homelessness. But landlords might also need to recognise that as household incomes fall, rents are more likely to need to go down than up.”

The foundation has undertaken a YouGov survey of 6,061 working-age adults across the UK, and says it shows that renters are bearing the brunt of pandemic job losses and are more likely than owner occupiers to have fallen behind with their housing costs.

The think-tank claims eight per cent of private renters and seven per cent of social renters who were working before the pandemic report that they have lost their job, compared to three per cent of owner occupiers.

The report also found that 15 per cent of private renters are worried about losing their job in the next three months, compared to 11 per cent of owner occupiers.

 

 

A statement from the foundation says that while the benefits system has taken some of the strain - with the share of private renters in receipt of Housing Benefit or Universal Credit increasing by one-third since February this year - such benefits “fall short of typical rents for many.”

And it concludes: “Despite the massive hit to incomes, private rents have continued to rise in recent months, suggesting sustained benefit support and protections from eviction will be needed through the winter months.”

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    • 02 November 2020 09:57 AM

    NO - They do not need help.
    They need to pay up as per contract agreements thea they signed.

    They should be put in gaol for non-payment, just like in Germany and Australia.

    Both of those counties have virtually no defaulting tenants as they have no social safety nets, just as the UK should have!!!!!!!

    Why must I have to lose my income whereas defaulters get paid for their rent? Scurillous.

    A totally upside down system AND SENSELESS TOO.

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    • 02 November 2020 10:13 AM

    Govt should just offer all rent defaulting tenants to pay rent direct to the LL.
    Such a Govt rent loan can easily be recovered through the PAYE tax code later on.
    Few tenants would take up such a loan though as they know they can rent default with impunity.

    Plus they know it could take years to evict them.
    Not much chance of Civil Recovery either.

    Feckless tenants know all this so why bother taking on a Govt loan to meet rent commitments!?

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    Perhaps the Resolution Foundation should campaign for the removal of S24 and thus remove a cost to landlords.

  • PossessionFriendUK PossessionFriend

    Rent is at market rate, if Tenants can't aford it, Gen rent should be calling on the welfare state to increase its provision, or Accommodate those tenants elsewhere at the State's expense.
    The fact that Councils [ 'Local' Govt ] choose not to build housing because like many PRS Landlords increasing, they don't find it financially viable - should not be ' let off the hook '

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    My think tank, its between my ears, tells me this is a problem for everyone. People in this country have become far too used to nanny state pandering to their every need and the councils have got far too used to robbing ther local residents and businesses to pay for it all. The roundabout has to stop and people will have to get off and look after themselves. In the end the costs will be lot less because the State will not be taking half of everyone's' income, wasting half of that and then using the rest to provide minimum solace to all. More house building is not the answer if the population keeps expanding. The end will be when the whole country is built on, just like Hong Kong and Singapore.

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    I am very much in favour of Social Security for SHORT term problems, the potential redundancy that looms above every employee, unexpected sickness. Unfortunately it has become a lifestyle choice for some although how anyone can be content with the pittance paid to the unemployable I fail to understand. Five years government support in a lifetme limit would focus the attention of some claimants. Claimants look after yourselves; don't think that the state should fund your (minimalist) lifestyle.

     
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    Yes that’s right, I’ll DROP my rent when they are already way, way below market value and I’ve got a queue of people trying to outbid each other every time a property of mine becomes vacant! And of course dropping rent in these circumstances will really help with all the mammoth extra costs being shovelled onto me at the moment - an extra £15k this month on EICR alone! Well done, think tank, you’ve nailed it there!!!

    FFS...

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