Public Health (Coronavirus) (Protection from Eviction) (England) (No. 2) Regulations 2021

Baroness Tyler of Enfield Excerpts

Thursday 18th March 2021 Lords Chamber

[Baroness Tyler of Enfield (LD) [V]]

My Lords, I refer to my interests in the register. While I welcome this short extension, it is only kicking the can down the road. As we have heard, private renters have been hit particularly hard by the pandemic. Research has found that twice as many private renters—who often have little or no savings—have suffered job losses compared with homeowners since coronavirus restrictions began.

As a Londoner, I note with real concern that one in seven London renters are in arrears, and women are twice as likely as men to have lost their job in the first lockdown. I am greatly concerned that women will be hardest hit by the end to the eviction ban. Before the pandemic, average rents took up 43% of women’s median earnings, compared with 28% of men’s, which reveals an invidious gender divide.

Simply suspending repossessions does nothing to address the underlying rent debt problem in the sector. It is vital that the Government develop an urgent financial package to help all those renters affected to pay off arrears, otherwise many tenants will have debts that are unsustainable, as we have heard. If they cannot pay them off, they will have to move home and face significant damage to their credit score, making it more difficult for them to access housing in the future.

The cost of rent debt is estimated to be around the £300 million mark, which is frankly relatively modest compared with the £1.6 billion that has been wiped off stamp duty for homeowners. Up to £3.8 million of funding was announced in the Budget to pilot no-interest loan schemes to help vulnerable consumers who will benefit from affordable short-term credit to meet unexpected costs, something I very much support. While we are still waiting to hear the details of this scheme, surely it would be possible for a scaled-up version of it to form the basis of a model for renters.