Rent Arrears: Covid-19

Lord Singh of Wimbledon Excerpts

Thursday 20th May 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My noble friend is right that we have seen rents reduce as a result of the pandemic. All the schemes that we have designed cover rent at the level presented by the landlord. Obviously, schemes that we have provided to support renters will reduce as a consequence of reducing rents.

[Lord Singh of Wimbledon (CB) [V]]

My Lords, although the excellent furlough scheme has helped to reduce some financial suffering during the pandemic, the reduced incomes of individuals and households have led to increased arrears for many tenants. If we are to avoid the hardships of a rise in homelessness with the ban on evictions due to end this summer, will the Minister consider loans to be used exclusively to clear rent arrears, as has been mentioned by many speakers?

[Lord Greenhalgh (Con)]

My Lords, I restate the Government’s position that we are not looking to encourage further debt. I also point to the statistics regarding homelessness. We have seen a 40% decrease in homelessness duty owed in the period between October 2020 and the same period in 2019. We are not seeing that massive spike in homelessness that has been alluded to.