Rent Arrears: Covid-19

Lord Carrington Excerpts

Thursday 20th May 2021 Lords Chamber

Asked by

[Lord Carrington]

To ask Her Majesty’s Government what further financial support they are considering to help private sector residential tenants clear rent arrears accrued since the introduction of restrictions to address the COVID-19 pandemic.

[Lord Carrington (CB) [V]]

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I declare my interests as set out in the register.

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

I declare my residential and commercial property interests as set out in the register. The Government have provided an unprecedented £352 billion support package, keeping millions in work and temporarily bolstering the welfare safety net by more than £1,000 a year for families most in need. Financial support from private rented sector tenants remains in place. The job retention scheme and universal credit uplift are available until the end of September. For renters who require additional support, £140 million of discretionary housing payments are available.

[Lord Carrington (CB) [V]]

I thank the Minister for his response, but the recent housing resilience survey suggested that the proportion of private renters in arrears increased from 3% in 2019 to 9% in 2020. Will the Minister accept that allowing arrears to grow in this way is not sustainable for tenants or landlords? The Budget announced a pilot no-interest loan scheme to help vulnerable consumers who would benefit from affordable short-term credit to meet unexpected costs. Will the Minister consider a similar loan scheme to support tenants who are now in arrears but do not claim benefit support?

[Lord Greenhalgh (Con)]

My Lords, I point out that two-thirds of the tenants identified in the survey have two months or less of rent arrears. We have preferred to avoid encouraging further debt, instead providing non-repayable financial support through furlough and the welfare system.