Renters facing job cuts crisis

YOUNG adults who are privately renting will be particularly vulnerable to losing income and potentially their jobs as the furlough scheme scales down, according to a survey.

Nearly a quarter (24 per cent) of private renters aged 16 to 24 and more than one in four (27 per cent) of those aged 25 to 34 are reliant on the coronavirus job retention scheme, the research among tenants in England and Wales found.

The survey findings were published by the National Residential Landlords Association (NRLA), which warned many of those reliant on the scheme could struggle to pay their rent as it winds down.

The coronavirus job retention scheme will close on October 31.

Before then, the level of government contributions is gradually being reduced, while employer contributions gradually increase as the scheme winds down.

This has led to concerns more employers will start to lay off employees they can no longer afford to keep on.

The survey of more than 2,000 renters in May found 84 per cent of 16 to 24-year-olds and 87 per cent of those aged 25 to 34 had been able to pay their rent as usual up to that point.

The NRLA, together with charities Centrepoint and Crisis, is urging the Government to boost the safety net for young renters.

They said that, for example, advance loans provided to Universal Credit claimants to cover the waiting period to receive their first payment should instead be converted into grants.

Ben Beadle, chief executive of the NRLA, said: “Young renters have borne the brunt of the Covid crisis.

“Many have relied on the furlough scheme to enable them to pay their rent.

“As this support reduces there is a serious danger they will struggle to meet their payments.”

He added: “The vast majority of landlords approached for help by their tenants have responded positively and that will continue to be the case as they do all they can to sustain tenancies.

“But both tenants and landlords need the security of knowing rents can continue to be paid.”

‘As support reduces they will struggle to meet their payments’