More than 400,000 private tenants may be in ‘significant rent arrears’ by end of this year, LSE research reveals

According to the report, around 10% of private renters are currently believed to be unemployed, which is double the national unemployment rate.

Between 6% to 7% of private renters are estimated to be in arrears, which is around twice the proportion of an average year before the pandemic.

The report said many renters are also at risk as their assured shorthold tenancies (ASTs) have not been renewed.

Data from the National Residential Landlords Association has suggested that only 20% of landlords have issued new tenancies to existing tenants, while more than 30% have allowed ASTs to become statutory periodic tenancies, which are short-term rolling contracts that typically last one month.

Since last December, the government has banned bailiffs from carrying out evictions across England, meaning renters cannot be forced out of their home even if the courts have granted an eviction, however these protections are due to come to an end at the end of this month.

The LSE report recommends that greater protections be put in place to protect both private tenants and landlords, including the immediate stopping of Section 21 evictions, which allow landlords to evict tenants without providing a reason.

It said more must also be done to speed up court proceedings for “extreme cases of failure to pay the rent”, meaning those in over six months’ arrears.

Professor Christine Whitehead, emeritus professor of housing economics at LSE and co-author of the report, said: “Most evictions remain on hold until after the 31 May. Depending on what the government announces will happen after this, many tenants could be vulnerable to being asked to leave their homes.

“However, we do not expect an immediate surge in evictions since in many cases landlords and tenants have found ways of coping through rent holidays and lower rents during the crises, and some renters have moved in with family or friends."

A Ministry for Housing, Communities and Local Government spokesperson said: “An unprecedented £352 billion support package is keeping millions in work and helping those most in need. It has prevented a widespread build-up of rent arrears by ensuring private renters can continue paying their rent and is supporting landlords too.

“Robust protections are still in place for renters, including longer notice periods of six months and banning bailiff enforcement of evictions for all but the most serious cases until 31 May. Councils can also provide support through the Discretionary Housing Scheme.”