Private renters and landlords across the country face a cliff edge as the end of furlough coincides with cuts to benefit support. With Bank of England warnings indicating that renters are more likely than any other group to have lost their jobs or been furloughed, the National Residential Landlords Association (NRLA) has argued that many more renters face the prospect of mounting rent debts. 

A new report published by the NRLA has revealed that, by the Government’s own admission, the proportion of private renters in arrears tripled in the period from 2019/20 to the end of 2020 from 3% to 9%. 

With furlough due to draw to a close at the end of September, alongside a £20 a week cut to Universal Credit and a continued freeze to housing benefit support, many more tenants are likely to accrue unsustainable debts. 

The NRLA points to warnings from the Bank of England about the risks posed to the country’s economic recovery as a result of renters experiencing financial difficulties. It also highlights concerns about what impact a failure to tackle COVID related rents debts will have on the credit scores of affected tenants, as well as the likelihood that they will be able to stay in their homes.