Charity calls for stronger protections in Renters (Reform) Bill as renter costs soar

Charity calls for stronger protections in Renters (Reform) Bill as renter costs soar

0:02 AM, 23rd May 2024, About a month ago 11

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The Renters (Reform) Bill, currently making its way through the House of Lords, doesn’t go far enough to address the growing financial strain on private renters, the debt charity StepChange warns.

It says the cost of renting in the UK has become increasingly unaffordable and points to new figures from the Office for National Statistics (ONS).

The ONS data reveals that average private rents grew by 8.9% in the year to April.

StepChange says its research paints a worrying picture of the financial pressures facing private renters.

‘Renting in the PRS is increasingly unaffordable’

The charity’s head of policy, public affairs and research, Peter Tutton, said: “We’ve reached a point where renting in the PRS is increasingly unaffordable, yet the growing scarcity of social housing means that more and more financially or otherwise vulnerable people have no choice but to do so.

“Sky-high rents and wider cost of living pressures mean millions of private renters are scraping by or relying on credit to pay their rent.

“Even with the Renters (Reform) Bill currently in the Lords, PRS tenants are given no effective statutory protection from eviction if they do fall into problem debt.”

He added: “While it’s important that this Bill is progressed with a clear timeline of when Section 21 will end, we’d like to see changes that would increase security for private renters.”

Mr Tutton says that tenants should be protected from eviction that matches those for mortgagors and social housing tenants.

The charity also wants to see a government commitment to delivering affordable housing – and reduce the risk of PRS tenants losing their home because of rent arrears.

Renters are resorting to credit

Research from StepChange shows renters are resorting to credit to cover their rent, with 31% having used credit in the last year, up from 28% in January 2024.

Half of all private renters (50%) are struggling to keep up with bills and credit commitments, compared to just 40% of the general population.

The rising cost of living is also forcing renters to cut back on essentials, with a third (33%) having done so in the last year, compared to a quarter (26%) of all UK adults.


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Comments

Mick Roberts

9:47 AM, 23rd May 2024, About a month ago

Give the Landlords some protection from

Selective Licensing (which will save Councils £ millions more in homeless than it collects in Licensing Tax fees)

Section 24 Tax (which probably costs more in homeless than it rips off Taxpayers)

Benefit tenants not using the UC money to pay Landlords rent (this could save the Taxpayer £6 billion on its own, never mind plus the associated homeless costs

2 years of zero income, but still the mortgage outgoings when Landlord can't get THEIR OWN PROPERTY back

Many more protections please.
And you will find your renters rents wun't be the extortionate cost they are now. I am charging AS MUCH AS I CAN GET to any new tenants as I don''t know when the next attack is coming from.

Keir Starmer in Sep 2021 (many missed it) called for 1% Wealth tax on Landlords. Does he not think tenants are paying enough already. Where does Keir think Landlords get their money from?

https://www.bbc.co.uk/news/uk-politics-58516799

Chris Brown

10:32 AM, 23rd May 2024, About a month ago

Reply to the comment left by Mick Roberts at 23/05/2024 - 09:47
The property a person rents may well be his home, but it is inherently temporary and is not his own, it belongs to the landlord.

Please rebuff all use of the following phrases,

'secure in his own home' : secure within the terms of his lease.
It is the fault of the government that there is only one form of lease in common use. Several years ago Mark Alexanded proposed another forrm of providing security, provided the terms of the lease were observed and compensation if early termination was required by the landlord.

'no fault eviction: no reason given, usually to avoid damaging the character of the tenant n any future reference

Please add more.

How many properties have been added to the rental market since the advent of the AST, and what proportion of the total rental market is now provided by the PRS compared to 1970, when I first consdered being a landlord, and declined to the risks of not gettng the property back.

Mick Roberts

10:53 AM, 23rd May 2024, About a month ago

Reply to the comment left by Chris Brown at 23/05/2024 - 10:32
Yes,

Renters groups keep forgetting this, we normal human beings like the renter. We lending them something, not giving them.

Ian Narbeth

10:56 AM, 23rd May 2024, About a month ago

Reply to the comment left by Mick Roberts at 23/05/2024 - 09:47
Mick, I regularly quote your wise words: "At the end of the day, the tenant pays for everything."

Mick Roberts

11:09 AM, 23rd May 2024, About a month ago

Reply to the comment left by Ian Narbeth at 23/05/2024 - 10:56
U gonna laugh Ian,
I've got one from you years ago:

Part of Ian Narbeth saying here & great words as sums it up exactly:

They have succeeded in driving private landlords out. Now they see the results of their actions.
They should be listening to these words we'd like to say to Govt, Councils, Shelter, Generation rent etc.
"How can you ensure the people who provide desperately-needed accommodation get paid so that they continue to house those who would otherwise be homeless?"

Ian Narbeth

11:28 AM, 23rd May 2024, About a month ago

Reply to the comment left by Mick Roberts at 23/05/2024 - 11:09
Mick, stop, stop! People will think we are a mutual adoration society 🙂

Cider Drinker

16:15 PM, 23rd May 2024, About a month ago

Reply to the comment left by Ian Narbeth at 23/05/2024 - 11:28
The proposals will only serve to make renting even more unaffordable (or will see the rental option disappearing altogether).

havens havens

17:05 PM, 23rd May 2024, About a month ago

The Renters (Reform) Bill isn't enough to ease the financial strain on private renters, says StepChange. With rents rising by 8.9% in a year, many renters are struggling and using credit to pay rent. StepChange suggests more protections against eviction, increased affordable housing, and better support for renters in debt to improve the situation.

Michael Booth

20:34 PM, 23rd May 2024, About a month ago

Tax up,finance fees up, selective licencing 100% increase in some cases, certification fees up repair costs up , RENT FREEZE, RENT CAP , CAN SOME ONEFROM THESE CHARITIES TELL ME IS THIS BUSINESSMODEL SUSTAINABLE?

Karen Young

22:46 PM, 23rd May 2024, About a month ago

I cannot understand why landlords are constantly being vilified and made out to be the bad guys.
It has been proven that the majority of private landlords are like us, responsible, want to do the best for our tenants; are responsive to issues raised and ensure the property is of a high standard. I reply by return to our tenant and sort issues immediately.
We bought our property in 2007 with the hope that the equity made would supplement our pension.
A year later we had the crash of 2008 and the property decreased in value by almost a half. Fast forward 16 years it has still not reached the value we paid for it. We have only had a couple of years where it has made a profit.
For the last two years we have made a loss.
We are horrified by the implications of the renters reform bill. It seems to be weighted in favour of tenants.
Periodic tenancy remove security of tenancy for us and the tenants. It costs us a month's rent to rent out our property to a new tenants. Our tenants have always been happy and have said what a wonderful landlady I am.
Now we are being told that tenancies will likely be 6 months. This is going to be catastrophic, we need to sell our property because we can no longer afford to keep it. We are being told that we won't be able to sell our property for 2 years of a new tenant moving in.
What tenant will stay if they know the landlord wants to sell. They will likely move out and we will be left with an accumulating debt of over £1000 every month. The current rhetoric is making every landlord out to be bad. We need to sell because our investment is just an accumulating debt and is a weight around our neck and a constant stress.
No allowance is made in the renters reform bill
Do other landlords share our concerns?

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