Private renters with Covid Rent Arrears have increased by 41% since May

A recent survey carried out with private renters in England and Wales by NRLA found that average Covid-19 related rent arrears owed by affected tenants had increased to £1,270 – up from £900 in May.

What is causing this rise?

The pandemic has had a huge effect on those who would normally be able to budget sufficiently to pay rent every month. The number of PRS tenants in receipt of Universal Credit in Wales has increased by a staggering 77% from February 2020 to February 2021. Almost two years on from the first lockdown, and this impact is still being felt, the survey has found.

From over 2,000 private renters asked, the NRLA found that the number of renters in arrears had actually fallen from 7% in May to 3.7%. However – this still amounts to approximately 433,000 private renters still struggling with arrears, UK Wide. Additionally, over half of these people are unable to receive Universal Credit, which means they are ineligible for Discretionary Housing Payments.

Those in receipt of Universal Credit payments were also feeling the pinch, with 59% of those asked expressing worries that the recent cut in Universal Credit would make meeting essential bills far more challenging.

NRLA chief executive Ben Beadle comments: “The NRLA is concerned that tenants with outstanding Covid related rent debts are seeing these arrears increase. Whilst landlords have done all they can to support affected tenants, they simply cannot afford for this situation to continue indefinitely.”

Festive Season prone to Rent Arrears:

Unfortunately, this data illustrates an increasingly anxious landscape for those who are struggling. Rent arrears can occur at any time, and with Christmas and New Year just around the corner, this is a typical period for tenants to default and this often continues into – and beyond – the New Year. Coupled with pandemic pressures and rising energy bills, both landlords and tenants are finding it difficult to find where to turn.

CACV provide free help and support to those living and renting in Wales:

Citizens Advice Cardiff & Vale are currently offering free, impartial advice and support to those who are feeling the weight of this burden, through a Private Rented Sector Debt Advice Helpline. The branch are the only Local Citizens Advice office that provide this bespoke specialist service.

The Citizens Advice Private Rented Sector Debt Helpline is a bespoke service that is dedicated to helping private rental tenants and landlords in Wales who are struggling with debt issues. The service is the only one of its’ kind being offered by a Local Citizens Advice office.

The aim of the project is to help people who may be feeling helpless and overwhelmed, feel empowered to get on top of their finances and ultimately, remain in their homes.

The helpline is open Monday – Friday between 9am and 5pm, and provides free, impartial, and confidential advice.

To get in touch with one of the support team on the Private Rental Sector Debt Helpline, click here.