Asked by: Mick Whitley (Labour - Birkenhead)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, whether his Department plans to make available additional financial support to people in rent arrears as a result of the covid-19 outbreak.
Answered by Christopher Pincher
The Government has provided a comprehensive package of support to help prevent people getting into financial hardship or rent arrears as a result of COVID-19. This includes support for businesses to pay staff salaries through the Coronavirus Job Retention Scheme, which has been extended until April 2021. We have boosted the welfare system by billions of pounds, including increasing Universal Credit and Working Tax Credit by up to £1,040 for the year.
We also lifted Local Housing Allowance rates to the 30th percentile of local rents in April 2020, which has provided 1.5 million claimants with around £600 more housing support per year than they would otherwise have received. In 2021/22 Local Housing Allowance rates will be maintained in cash terms at their increased level, meaning claimants renting in the private rented sector will continue to benefit from the significant increase in the rates applied in April 2020.
For those who require additional support Discretionary Housing Payments are available. As announced at the spending round for 2020/21 there is already £180 million in Discretionary Housing Payments for local authorities to distribute for supporting renters with housing costs in the private and social rented sectors. For 2021-22 the Government will make available £140 million in DHP funding, which takes account of the increased LHA rates.
We continue to closely monitor the ongoing effects of the pandemic on renters.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment his Department has made of the potential merits of making loans available to people in rent arrears as a result of the covid-19 outbreak, on similar lines to the Tenancy Saver Loan Scheme in Wales and the Tenant Hardship Loan in Scotland.
Answered by Christopher Pincher
This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic.
Notably, to help prevent people getting into financial hardship, we have increased the local housing allowance rate to the 30th percentile of local market rents in each area. The increased LHA rates will be maintained at the current levels in cash terms in 2021/22, even in areas where the 30th percentile of local rents has gone down. We have boosted the welfare system by billions of pounds, including increasing Universal Credit and Working Tax Credit by up to £1,040 for the year
In addition, the Coronavirus Job Retention Scheme has offered support for businesses to pay staff salaries, enabling people to continue to pay their rent and has been extended until April 2021.
For those who require additional support, Discretionary Housing Payments (DHP) are available. As announced at the spending round for 2020/21, there is already £180 million in DHPs for local authorities to distribute for supporting renters with housings costs in the private and social rented sectors. For 2021-22 the Government will make available £140 million in DHP funding, which takes account of the increased LHA rates.
We continue to closely monitor the ongoing effects of the pandemic on renters.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 5 October 2020 to Question 97550, if he will take steps to introduce a Tenant Loan Scheme similar to the Tenancy Saver Loans and Tenant Hardship Loan Fund introduced by the Welsh and Scottish Governments.
Answered by Christopher Pincher
This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic.
Notably, to help prevent people getting into financial hardship, we have increased the local housing allowance rate to the 30th percentile of local market rents in each area. The increased LHA rates will be maintained at the current levels in cash terms in 2021/22, even in areas where the 30th percentile of local rents has gone down. We have boosted the welfare system by billions of pounds, including increasing Universal Credit and Working Tax Credit by up to £1,040 for the year.
In addition, the Coronavirus Job Retention Scheme has offered support for businesses to pay staff salaries, enabling people to continue to pay their rent and has been extended until April 2021.
For those who require additional support, Discretionary Housing Payments are available. As announced at the spending round for 2020/21, there is already £180 million in DHPs for local authorities to distribute for supporting renters with housings costs in the private and social rented sectors. For 2021-22 the Government will make available £140 million in DHP funding, which takes account of the increased LHA rates.
We continue to closely monitor the ongoing effects of the pandemic on renters.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have to provide financial support to tenants who have accrued rent arrears as a result of the COVID-19 pandemic.
Answered by Lord Greenhalgh
The UK Government has provided an unprecedented package of financial support which is available to tenants, and we continue to closely monitor the impacts of Covid-19 upon renters.
Notably, we have increased the local housing allowance rate to the 30th percentile. The increased LHA rates are expected to provide 1.5 million claimants with around £600 per year of housing support more than they would otherwise have received. This measure maintains that significant increase for all rates, by protecting the rates at the current levels in cash terms in 2021/22, even in areas where the 30th percentile of local rents has gone down. This continued investment in the LHA will support claimants in the private rented sector to manage housing costs. We also increased Universal Credit and Working Tax Credit by up to £1,040 for the year. The Coronavirus Job Retention Scheme has offered support for business to pay staff salaries, enabling people to continue to pay their rent and has been extended until April 2021.
For those who require additional support, Discretionary Housing Payments are available. As announced at the spending round for 2020/21, there is already £180 million in Discretionary Housing Payments for Local Authorities to distribute for supporting renters with housing costs in the private and social rented sectors. For 2021-22 the Government will make available £140 million in DHP funding, which takes account of the increased LHA rates. These interventions offer a more appropriate and sustainable form of support for vulnerable renters.
The recently published EHS Household Resilience Study found that 93 per cent of private renters are up to date on their rent. This indicates our package of support is working, and has prevented widespread arrears.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what plans he has to (a) write off tenants' rent arrears and (b) provide financial assistance to help tenants pay rent arrears accrued due to loss of earnings during the covid-19 outbreak.
Answered by Christopher Pincher
The Government has put in place an unprecedented financial package which is supporting renters with their housing costs. This includes support for businesses to pay staff salaries through the Coronavirus Job Retention Scheme, which has been extended until March 2021. We have also boosted the welfare system, including increasing Universal Credit and Working Tax Credit by up to £1,040 for the year and increasing Local Housing Allowance rates so that they cover the lowest 30 per cent of market rents. For those who require additional support, Discretionary Housing Payments are available. As announced at the spending round for 2020/21 there is £180 million for local authorities to distribute in Discretionary Housing Payments for supporting renters with housing costs in the private and social rented sectors.
Under the Coronavirus Act 2020, landlords are required to give tenants 6 months’ notice except in the most serious circumstances such as anti-social behaviour, fraud and arrears of more than 6 months. Housing possession cases were suspended in the courts from 27 March until 20 September. Landlords are able to progress their claims, and the most serious cases are being prioritised by the courts. To further protect tenants, the Government has changed the law to ensure bailiffs do not enforce evictions in England until 11 January 2021, except in the most serious circumstances such as illegal occupation, anti-social behaviour or rent arrears of more than 9 months accrued before 23 March.
We will keep these measures under review?and our?decisions?will continue?to be guided by the latest public health advice.
Asked by: Colleen Fletcher (Labour - Coventry North East)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the number of households that have fallen into rent arrears with (a) private landlords and (b) social housing providers as a result of the covid-19 outbreak, in (i) Coventry North East constituency, (ii) Coventry, (iii) the West Midlands and (iv) England; and what steps his Department is taking to protect renters during the covid-19 outbreak.
Answered by Christopher Pincher
The Government has put in place an unprecedented financial package, which is supporting renters with their housing costs. This includes support for businesses to pay staff salaries through the Coronavirus Job Retention Scheme, which has been extended until March 2021. We have also boosted the welfare system, including increasing Universal Credit and Working Tax Credit by up to £1,040 for the year and increasing Local Housing Allowance rates so that they cover the lowest 30 per cent of market rents. For those who require additional support, Discretionary Housing Payments are available. As announced at the spending round for 2020/21 there is £180 million for local authorities to distribute in Discretionary Housing Payments for supporting renters with housing costs in the private and social rented sectors.
Under the Coronavirus Act 2020, landlords are required to give tenants 6 months’ notice except in the most serious circumstances such as anti-social behaviour, fraud and arrears of more than 6 months. Housing possession cases were suspended in the courts from 27 March until 20 September. Landlords are now once again able to progress their claims, and the most serious cases are being prioritised by the courts. To further protect tenants, the Government has changed the law to ensure bailiffs do not enforce evictions in England until 11 January 2021, except in the most serious circumstances such as illegal occupation, anti-social behaviour or rent arrears of more than 9 months accrued before 23 March.
The Department does not currently hold information on the number of households within the private and social rented sectors that have fallen into rent arrears in Coventry North East constituency, Coventry, the West Midlands and England as a result of the Covid-19 outbreak.
The Regulator of Social Housing’s quarterly survey report for July to September 2020 (which is based on regulatory returns from private registered providers and private registered provider groups that own or manage more than 1,000 homes) shows that mean current tenant arrears stood at 3.98 per cent at the end of September. The equivalent figure in the same quarter of 2019/20 was 3.71 per cent. This information is for private registered providers in England and does not include local authorities. The report is available online at: https://www.gov.uk/government/collections/quarterly-survey-of-private-registered-providers
We are carrying out a data collection to gather information on the impact COVID-19 is having on local authority finances. Data from these returns indicate that Housing Revenue Account residential rent arrears for local authorities for April to October 2020 is estimated at £101.265 million.
Asked by: Yasmin Qureshi (Labour - Bolton South East)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what steps he has taken to support households with rent arrears since the start of the Covid-19 pandemic.
Answered by Christopher Pincher
The Government has put in place unprecedented measures to protect and support renters during the Covid-19 pandemic, which includes support for households with rent arrears.
Under the Coronavirus Act 2020, landlords are required to give tenants 6 months’ notice except in the most serious circumstances such as anti-social behaviour, fraud and arrears of more than 6 months. Housing possession cases were suspended in the courts from 27 March until 20 September. Landlords are now once again able to progress their claims, and the most serious cases are being prioritised by the courts. To further protect tenants, the Government has changed the law to ensure bailiffs do not enforce evictions in England until 11 January 2021, except in the most serious circumstances such as illegal occupation, anti-social behaviour or rent arrears of more than 9 months accrued before 23 March.
The Government has also put in place an unprecedented financial package, which is supporting renters and ensuring that they can continue to afford their housing costs. This includes support for businesses to pay staff salaries through the Coronavirus Job Retention Scheme, which has now been extended until March 2021. We have also boosted the welfare system, including increasing Universal Credit and Working Tax Credit by up to £1,040 for the year and increasing Local Housing Allowance rates so that they cover the lowest 30 per cent of market rents. For those who require additional support, Discretionary Housing Payments are available. As announced at the spending round for 2020/21 there is already £180 million for local authorities to distribute in Discretionary Housing Payments for supporting renters with housing costs in the private and social rented sectors.
The Government believes this strikes the right balance between prioritising public health and supporting the most vulnerable renters, while allowing landlords to obtain possession of their property in the most egregious cases.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, if he will take steps to ensure that protections afforded under the Coronavirus Act (2020) to tenants in the private and social rented sectors are not removed without impact assessments being undertaken when covid-19 lockdown restrictions are lifted.
Answered by Christopher Pincher
The Government has established an unprecedented package of support to protect renters throughout the Covid-19 pandemic. This includes legislating through the Coronavirus Act 2020 to delay when landlords can evict tenants, a six month stay on possession proceedings in court and a range of financial support to enable renters to continue paying their living costs, including rental payments.
To further protect renters over winter, we legislated in August to increase notice periods to six months in all but the most serious circumstances. This means that most tenants served notice now would not be asked to leave until at least May 2021. These increased notice period requirements will be in place until at least 31 March 2021.
Alongside this, the Government has changed the law in England to ensure bailiffs do not enforce evictions over this period of national restrictions or the Christmas period. This means no eviction notices are to be served until 11 January 2021 at the earliest and, given the 14 day notice period required, no evictions are expected until 25 January 2021 at the earliest. The only exceptions to this are the most serious circumstances: illegal occupation, false statement, anti-social behaviour, perpetrators of domestic abuse, where a property is unoccupied following the death of a tenant in relation to housing association tenancies, and extreme rent arrears equivalent to 9 months’ rent with any arrears accrued since 23 March discounted.
We believe this strikes the right balance between prioritising public health, supporting the most vulnerable renters and ensuring landlords can access and exercise their right to justice.
We will continue to keep the need for emergency measures introduced by the Coronavirus Act 2020 under review, and will be informed by the latest public health situation and the effect on both tenants and landlords.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, if he will take steps to (a) write off rent arrears built up by private tenants during the covid-19 outbreak and (b) establish a facility to protect landlords' minimum amount of rental income required for basic subsistence; and if he will make a statement.
Answered by Christopher Pincher
The Government has no plans to write off COVID-19 related rent arrears. During this period, tenants should continue to pay their rent and abide by all other terms of their tenancy agreement to the best of their ability. Where tenants are unable to pay their rent or if rent arrears have accrued, landlords and tenants should work together to agree a suitable repayment plan. We encourage landlords to offer support and understanding to tenants who may see their income fluctuate during this period.
Our generous support package is supporting landlords by helping tenants to sustain tenancies and continue to pay their rent throughout the COVID-19 pandemic.
This comprehensive package includes a range of support for businesses to pay staff salaries, including through the furlough scheme which has now been extended to March 2021. We have also strengthened the welfare safety-net with an over £9 billion boost to the welfare system, including an extra £1 billion to increase Local Housing Allowance (LHA) rates so that they cover the lowest 30 per cent of market rents. For those renters who require additional support, there is an existing £180 million of Government funding for Discretionary Housing Payments made available this year, an increase of £40 million from last year, which is for councils to distribute to support renters with housing costs.
Furthermore, where landlords do find themselves in coronavirus-related hardship, mortgage lenders have agreed to offer payment holidays of up to six months, with applications now open until 31 January 2021.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government, further to the Written Answers by Lord Greenhalgh on 1 October (HL8296), 6 October (HL8828), and 28 October (HL9442), what assessment they have made of the impact of (1) fears of negative equity on existing house purchases, and (2) house prices rising faster than wage increases, on the effectiveness of diversification.
Answered by Lord Greenhalgh
In response to Part 1: The Government has taken unprecedented measures to support consumers, businesses and the wider economy. Many homeowners will benefit from these measures.
The Government has strengthened the welfare safety-net with over £9 billion boost to the welfare system. The furlough scheme has been extended to the end of March, with employees receiving 80% of their current salary for hours not worked. The Government has also supported business during this time through the coronavirus business interruption schemes, the bounce back loans and the future fund.
This package of support also includes mortgage holidays for up to 6 months, and a moratorium on lender repossession enforcement until 31 January 2021. These measures continue to protect homeowners who have been affected by coronavirus from unaffordable costs if they cannot work due to the coronavirus pandemic.
The Government has also taken substantial measures to support the housing market. We have introduced a stamp duty holiday, with effect until 31 March 2021, raising the threshold for paying stamp duty land tax from £125,000 to £500,000. We have kept the housing market open, with clear guidance on how to conduct home buying and selling amid Covid-19 restrictions. We have taken measures to ensure that the housing market and all associated activities can continue during the current lockdown, and the housebuilding sector, in line with the wider construction sector, will continue to operate and follow Covid-19 secure guidelines. In combination, these measures have ensured a functioning and effective housing market. There are currently high levels of transactions in the market. The provisional seasonally adjusted estimate of UK residential transactions in September 2020 is 98,010, which is very similar to September 2019 at only 0.7% lower and 21.3% higher than August 2020.
In response to Part 2: the Government wants to see the housing market diversify over the long term, regardless of short term movements in house prices. We support community and self-builders, small and medium enterprises, and those who are building homes in innovative ways. We have put in place initiatives to diversify the market including the £2.5 billion Home Building Fund, which received a £450 million boost in June, and the £1 billion ENABLE Build guarantee scheme. In addition, we are supporting the Build to Rent sector with a £3.5 billion Guarantee Scheme, driving up standards and quality across the private rented sector. Leveraging in more private investment will help create skilled jobs and drive economic growth while our ongoing planning reforms will reduce burdens on the construction sector.