In a bid to alleviate the growing burden of debt among private renters, a coalition of debt advice charities is urging Housing Secretary Michael Gove to take bold action beyond the mere banning of Section 21.
StepChange, Money Advice Trust, Citizens Advice, Christians Against Poverty, and the Law Centres Network have collectively penned a letter to Gove, pressing for the prioritization of the Renters Reform Bill in the current parliamentary session. Their aim is to push for stronger measures within the bill to assist private renters facing financial hardship.
Recent polling conducted by YouGov for StepChange reveals alarming statistics, indicating that private renters are twice as likely to be ensnared in problem debt compared to the average person. Furthermore, over half (53%) of private renters report struggling to keep up with bills and credit obligations in recent months.
The root of this crisis, according to the charities, lies in the skyrocketing average private rents, which erode financial resilience among tenants, particularly those grappling with vulnerabilities such as ill-health. Moreover, the inability of these individuals to secure social housing exacerbates their predicament.
To address these pressing concerns, the coalition is advocating for the establishment of a Tenancy Support Programme, akin to the Pre-Action Protocol for social tenants in rent arrears. This proposed initiative would mandate private landlords to undertake reasonable measures to assist tenants facing financial difficulties, such as providing referrals to benefits advice and negotiating affordable repayment plans for arrears.
These proposals, assert the charities, must be bolstered by empowering judges with the discretion to suspend eviction proceedings in cases where landlords fail to fulfil their obligations under the Tenancy Support Programme.
Crucially, public sentiment appears to be firmly behind these proposed reforms, with 72% of UK adults expressing support for the notion that private landlords should offer tenants an affordable repayment plan before pursuing eviction.
Richard Lane, representing StepChange Debt Charity, underscores the urgency of the situation, emphasizing that the current housing affordability crisis is pushing millions of private renters perilously close to the brink of problem debt. He highlights the stark disparity in protections afforded to mortgage holders and social tenants compared to their counterparts in the private rental sector, stressing the imperative of extending dignity and security to financially vulnerable renters.
In sum, the coalition’s call for robust tenant protections resonates as a clarion call for urgent housing reform. As policymakers deliberate the fate of the Renters Reform Bill, the plight of millions hangs in the balance, underscoring the imperative of swift and decisive action to safeguard the economic well-being of vulnerable renters.