Furlough ending – what does this mean for landlords and renters?
Furlough has supported the nation throughout the pandemic, however with furlough ending what does this mean for landlords and renters? The Bank of England indicated renters were more likely than any other group to have lost their jobs or been furloughed. With renters facing the prospect of mounting rent debts, what does this mean for landlords?
Landlords vulnerable to rent arrears
With furlough ending, Universal Credit cut, and a freeze on housing benefit support, more tenants are at risk of debts. This combination could be a deadly one for many renters who will now see a substantial fall in their income. There are concerns about the impact covid related rents debts will have on the credit scores of affected tenants. The Government has admitted that many landlords “are highly vulnerable to rent arrears”, but what does this mean for landlords? So far, there are no plans to support landlords in recovering rent arrears which could have a severe crippling effect.
Landlords and renters in need of help
The government is being looked on to help support both renters and landlords as failing to do so could worsen an already critical situation. With renters facing the prospect of being made homeless and in debt, for many, the future looks very bleak. And in the same breath, there are landlords who are struggling to pay mortgages and becoming in debt to mortgage lenders. So, will the government look to support both sides to the letting crisis? The NRLA has started a campaign called funding for renters, justice for landlords. They are calling for direct financial support for landlords and tenants who have faced arrears during the pandemic.
Here at Thompsons Lettings, we’re proud to support both landlords and tenants. If you’re a tenant looking for accommodation or a landlord looking for a letting agent then please contact us today.