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Country ‘likely’ to see homelessness spike when eviction ban ends

Tenants who are spared eviction under new government legislation are unlikely to be able to pay rent after the three-month period is up and could be at threat of being made homeless, housing figures have said.

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The government’s announcement of a ban on evictions for three months with landlords and tenants agreeing an ‘affordable payment plan’ afterwards is likely to lead to a spike in homelessness after that period.

Hannah Gousy, head of policy and external affairs at Crisis, told Inside Housing: “If you are not paying your rent because you have lost your job as a result of coronavirus, then the idea that you would be in a position to pay your rent for those three months [afterwards] seems highly unlikely, and we could just be pushing the problem further down the road.”

Ms Gousy welcomed the ban, which prevents landlords starting new possession proceedings against tenants for at least three months, but said it is “absolutely essential” that this is bolstered by a more generous welfare system.

“We don’t want to see good emergency measures that, when they end, lead to a hike in homelessness. What we need to see is a really big injection of cash to make sure that our welfare safety net during this period is generous enough that people can pay their rent.”


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A similar argument was made by Sir Iain Duncan Smith in the commons on Thursday. He said that the government “could change the benefit rates allowing greater expanse of money to flow”.

Sir Ian also said the government could take action immediately to lower the taper rate and reduce the waiting time to receive the benefit.

The taper rate is the rate at which your maximum Universal Credit award is reduced as your earnings increase.

Beth Redmond of the Tenants Union said: “It looks like there is a cushion for three months but as soon as that period is up there is no legislation in place so it could be that the evictions are being deferred.

“In a few months’ time there is just going to be a huge increase of people becoming homeless because of Section 21 and the knock-on effects will be massive.”

Ms Gousy also noted that in many cases evictions are never taken to the courts as tenants assume they must leave.

The government guidance says that during the period there can be no new possession proceedings “through applications to the court” and therefore there needs to be a “really strong public communications push” to make renters aware, Ms Gousy said.

James Murray, Labour MP and former deputy mayor of London for housing, added his voice to calls to protect renters who are forced out of work by the pandemic.

He said on Twitter: “A three-month eviction ban is welcome. But after that the government must not walk away, with landlords and tenants left to work out an ‘affordable payment plan’.

“Renters – 2/3 of who have no savings – should not be hit by coronavirus then left to face huge debts down the line.”

James Prestwich, policy director at the Chartered Institute of Housing, said it is “likely” that coronavirus will lead to an overall increase in rent arrears but that social housing providers have a “long track record of working with tenants to ensure that they are able to maintain tenancies – and eviction is always a last resort”.

Will Jeffwitz, head of policy at the National Housing Federation (NHF), said that housing associations will work closely with tenants to ensure access to benefits and that the NHF “wants to work with ministers to ensure that the welfare system can quickly provide help to anyone who needs it, and there is support in place for housing associations dealing with any loss of income from rent”.

London mayor Sadiq Khan said on Thursday that the eviction ban is merely “kicking a can down the road”.