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Councils call for extra funding to help prevent evictions when ban lifts this weekend
Councils are calling on the government to increase the funding available to support struggling renters ahead of the evictions ban ending this Sunday, as London boroughs reported a 30% increase in those needing help since the onset of the COVID-19 pandemic.
Umbrella group London Councils that said boroughs expect demand for Discretionary Housing Payments (DHPs) to “skyrocket” when landlords restart possession proceedings. DHPs are allocated to local authorities to help those unable to keep up with housing costs.
This year’s DHP fund is worth £180m, which is £40m more than the previous year.
However, research by London Councils found that applications for DHPs in the capital rose by 30% in the first three months of the pandemic alone.
A moratorium on evictions, first introduced in late March as part of the government’s response to the coronavirus outbreak, will finally come to an end on Sunday, having been extended twice by ministers.
Guidance for landlords and tenants in the social and private rented sectors on the new evictions process was published yesterday.
Possession notice periods for new evictions will be extended to six months in most cases, except those involving domestic abuse, anti-social behaviour or rent arrears exceeding six months.
Ministers also announced last week that they will ask bailiffs to agree to a “Christmas truce” on evictions enforcement, although it has not specified when the amnesty will be in effect.
The government argues that the measures “strike a balance between protecting vulnerable renters and ensuring landlords whose tenants have behaved in illegal or anti-social ways have access to justice”.
But Muhammed Butt, executive member for welfare, empowerment and inclusion at London Councils and leader of Brent Council, warned of an “upcoming surge” in people facing homelessness if ministers do not increase the support available to renters financially impacted by the COVID-19 crisis.
It is expected that demand for DHPs will increase further when the eviction ban ends, as tenants often seek support from their council once they are served with an eviction notice.
Mr Butt said an emergency boost to DHP funding “is clearly necessary” and urged ministers to “act now”.
The Local Government Association pressed the government to provide assurances over DHP funding for the next financial year as part of the upcoming Spending Review.
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A spokesperson said: “Councils have serious concerns that they are yet to see the real spike in demand for support with housing costs, particularly when the ban on evictions comes to an end.”
London mayor Sadiq Khan this week wrote to government asking for the power to introduce a two-year private rent freeze in the capital in order to limit evictions.
He also called for grants to help those in arrears and to make up the shortfall between housing benefits and rents, both of which he said could be achieved through increased DHP spending.
Charities warned that renters across the country still face losing their home imminently despite the government’s move to introduce six-month notice periods and the Christmas truce on evictions.
Polly Neate, chief executive at Shelter, said: “Recent government measures that will give renters threatened with eviction more time to find a new home are positive steps, but renters served with notice before the end of August could still face automatic eviction when the ban lifts in a few days.
“And for those served notice after the end of August, the measures simply delay the looming threat of homelessness.”
Dan Wilson Craw, deputy director at Generation Rent, said: “Although landlords must now give tenants six months’ notice, tenants who have already had notice will lose protections on Sunday.
“While the government has created extra hurdles for landlords, including reactivation notices and a review hearing, tenants still have no idea what this means for them and how long they’ll be able to stay in their home.”
A spokesperson for the Ministry of Housing, Communities and Local Government said: “We’ve taken unprecedented action to support renters by banning evictions for six months, preventing people getting into financial hardship and helping businesses to pay salaries.
“We have now gone further by changing the law to increase notice periods to six months to help keep people in their homes over the winter months and introducing a ‘winter truce’ on the enforcement of evictions.
“Together, these measures strike a balance between protecting vulnerable renters and ensuring landlords whose tenants have behaved in illegal or anti-social ways have access to justice – in direct contrast to rent controls which could drive responsible landlords out, reduce investment in high-quality housing and ultimately push rents up.”
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