Charity warns that tenants’ ‘wall of debt’ will worsen

A £360 million “wall” of rental debt built during the coronavirus crisis is set to get worse amid imminent Universal Credit cuts, a charity is warning.

About half a million private tenants are now trying to stay on top of £360 million in rent arrears across the UK, according to calculations from Stepchange Debt Charity.

Private renters in arrears said they were behind by just under £800 on average.

The charity said a planned £20-per-week cut to Universal Credit will escalate entrenched difficulties. It highlighted the case of a 61-year-old from Essex in £2,000-worth of rent arrears, who said: “I have recently managed to get some help from the council regarding my rent and am just about managing to pay it in full, but I’m still not really able to pay anything towards the arrears.

“Luckily the landlord seems fine with this at the moment, but obviously that could change at any time.”

Stepchange’s research suggests around one in 10 renters who are in work expect to be evicted from their homes as a result of their debts within the next 12 months.

In another case, a woman who works for a travel company and is in £2,000 of rent arrears told Stepchange: “My husband is suffering with long Covid and although he is at work, the stress of not hitting his targets is really affecting his mental health.

“He is just about earning enough to pay the rent, but not enough to be able to contribute towards the arrears.”

Phil Andrew, chief executive of Stepchange, said: “Covid support schemes, while a lifeline for many, haven’t been able to help renters address their arrears and with cuts to Universal Credit and the end of furlough imminent, there is a real danger of thousands losing their homes. That’s why Stepchange is calling for a dedicated financial support to help ensure renters can safely wind down Covid rent debts and keep their homes.”