New research by the Resolution Foundation has found that one in eight private renters have fallen behind with housing costs since the COVID-19 crisis began, compared with on in twelve mortgaged home owners. Lindsay Judge, the principal policy analyst at the Resolution Foundation, said renters tended to be in a weaker position going into the crisis, with lower levels of savings and a higher proportion of their income spent on housing costs. She added that home owners have been more successful at reducing their housing costs through mortgage holidays.

The government has stated it has taken “unprecedented” action which includes temporarily banning evictions based on arrears and increasing Local Housing Allowance. Despite this action, the Housing, Communities and Local Government Committee has warned that there is a looming crisis in the private rental sector, with thousands of tenants across the UK unable to pay their rent through job losses or significant loss of income.

The National Residential Landlord Association (NRLA) said that due to the pandemic, 54% of its members have experienced some combination of rent payment problems or unanticipated periods where properties are lying empty. While mortgage holidays are available to many landlords which the NRLA say is helping to sustain tenancies, it will ultimately result in a cost further down the line. The NRLA wants to see support extended to help tenants cover their costs, including the elimination of the 5 week waiting time for Universal Credit.

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