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Government should step in now to help renters – Generation Rent
12:06 AM, 23rd August 2023, 3 years ago
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A tenant activist group says the government needs to step in and help renters and put in place long-term solutions to the housing crisis – including the unfreezing of Local Housing Allowance (LHA).
The call comes from Generation Rent after the housing charity Shelter warned that 51% of tenants are ‘just one pay cheque away’ from being made homeless.
The organisation says that a third of tenants also don’t have the financial resources to pay their rent should they lose their job.
And now Generation Rent is supporting Shelter’s call in warning that the cost-of-living crisis is creating an unprecedented situation for tenants.
‘Renters are in a more precarious position than ever’
Generation Rent’s chief executive, Ben Twomey, said: “This survey reveals a painful truth – renters are in a more precarious position than ever.
“In such an uncertain economic climate, it is terrifying that over half of renters may not be able to find money to pay their rent if they were to suddenly lose their job.”
He added: “That these same renters, through no fault of their own, could potentially lose their home if their landlord chose to evict them with a Section 21 eviction is equally worrying.”
Government needs to act
Mr Twomey says that the government needs to act and put in place solutions that will help tenants.
He said: “The government needs to act to support renters now and to provide longer term solutions to the cost of renting crisis that is devastating communities across the country.
“We need to see Local Housing Allowance unfrozen and an urgent effort to build more homes, particularly more social homes.”
He added: “These measures, combined with the passing of the Renters (Reform) Bill, would protect tenants from imminent homelessness and give hope that things can and will get better.
“Change is long overdue but has never been so desperately needed as right now.”
Tenants are increasingly struggling
The response from Generation Rent follows yesterday’s story from Shelter that tenants are increasingly struggling – and will struggle to pay their rent.
Shelter’s chief executive, Polly Neate, said: “The severe lack of social homes means swathes of people are barely scraping by as they’re forced to compete for grossly expensive private rentals, because there is nothing else.
“With food and household bills continuing to surge, the situation is precarious for thousands of renters who are one pay cheque away from losing their home, and the spectre of homelessness.”
She added: “The time for piecemeal policies is over. To jam the brakes on the housing emergency, we need a genuinely affordable alternative to private renting.”
Tags:
Generation Rent advocacy, Housing crisis UK, Local Housing Allowance unfreezing, Renters Reform Bill Impact, Tenant vulnerabilities government intervention
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Member Since May 2018 - Comments: 1996
10:08 AM, 23rd August 2023, About 3 years ago
Whilst Mr. Twomey says “…the government needs to act” the reason that “…Renters are in a more precarious position than ever” is because of government action….all the UK governments have driven landlords out of the PRS and reduced tenant choice thereby driving up rents and competition between renters who are outbidding each other for available properties.
There isn’t going to be a “genuinely affordable alternative to private renting” because none of the UK governments can afford it after what they did during the Covid outbreak to buy off the electorate.
What the government could “afford” is allowing people to invest their pensions in energy efficient housing via a SIPP. You are already allowed to do this with a commercial property…and you can own land in a SIPP…you’re just now allowed to put a house on it.
If the government wanted to reduce upward pressure on rents it could start do this by allowing landlords to deduct their finance costs.
Member Since September 2018 - Comments: 3504 - Articles: 5
10:32 AM, 23rd August 2023, About 3 years ago
simply unfreezing the LHA would ensure that the most vulnerable are not subject to eviction for arrears I agree, especially where the top ups between the LHA rate and actual rent is significant.
Another sticking plaster approach though…as ever, but some relief to T and LL.
Member Since May 2014 - Comments: 616
10:59 AM, 23rd August 2023, About 3 years ago
Mr Twomey needs to take a long hard look at what he advocating.
The measures in the renters reform bill will not help him or the tenants he is purports to represent.
The loss of section 21 will trigger a much bigger shortage of available properties for them to choose from.
Government policies combined with mortgage increases are doing a very good job already at reducing the supply in the PRS but the Renters reform bill will in my opinion massively reduce the amount of property available for Generation rent to choose from.
Member Since June 2013 - Comments: 1121
12:34 PM, 23rd August 2023, About 3 years ago
Dear Demented Polly and Gormless Generation Rant.
Your collective efforts and that of the Conservative/ Lib Dem governments 2010 to date and the socialist anti landlord rhetoric movement have resulted in:
Section 24 tax.
EPC “C” proposals 2025/28.
Tenant Fee Act 2019
( written by a Shelter activist for Theresa May)
Rent Reform Act proposals.
Additional BTL stamp duty.
Reduction in CGT allowance from £12,400 to £6,000 this year, and £3,000 next year.
Landlords are selling up. Thats why Section 21 notices are up. You need to look closer to home for the cause.
Member Since January 2016 - Comments: 297 - Articles: 1
1:12 PM, 23rd August 2023, About 3 years ago
So winter is coming. Who wants to get out of bed on a cold winter’s morning and go to work?
Why not chuck the job in and go on the dole? It would be easier if some gullible dogooder could get some funds to pay my rent?
Step forward young shaver Twoomey
Your country needs you
Member Since June 2023 - Comments: 44
5:35 PM, 23rd August 2023, About 3 years ago
Gove is acting like a maniac and doing everything this guy demands.
I thought Boris dragging the country around with him in his mid life crisis was bad brought.
Now landlords are at the Mercy of Gove’s mid life crisis.
Member Since January 2016 - Comments: 297 - Articles: 1
5:43 PM, 23rd August 2023, About 3 years ago
“no rent , no accomadation”
Givernment borrowing in May was 103% of Gross domestic product. That means in effect we cannot just keep printing money as it simply becomes counter productive.
Member Since June 2013 - Comments: 3237 - Articles: 81
6:53 PM, 23rd August 2023, About 3 years ago
Reply to the comment left by Stella at 23/08/2023 – 10:59
Well said Stella
The loss of section 21 will trigger a much bigger shortage of available properties for them to choose from.