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One in five private renters expect to lose their job in next three months, says Shelter
Nearly one in five private renters in England feel they are likely to lose their job in the next three months because of the coronavirus crisis, Shelter has claimed.
Research commissioned by the housing charity found an estimated 1.7 million adults living in the private rented sector expect to become unemployed as a result of the pandemic.
Polling carried out by YouGov shortly after the government announced its job retention scheme revealed that 24% of private renters have already seen their incomes fall or lost their jobs.
Some two million renters – 23% – believe losing their job would leave them immediately unable to pay their rent, the survey suggested.
Polly Neate, chief executive of Shelter, said: “The government has rightly suspended evictions until June, so no one has to face homelessness in the middle of this pandemic. But millions of renters will be in dire straits further down the line without more government support.
“As renters lose their jobs and see their incomes hit, many will have to rely on the welfare safety net for the first time. Our services are already hearing from families in homes they could comfortably afford under normal circumstances, who are now in serious financial difficulty.
“We’re facing an onslaught of people suddenly unable to afford their rent, at a time when people need to stay put and cannot safely move to a cheaper home.”
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She said benefit levels are still too low to stop people falling behind on rent, despite a recent increase to the Local Housing Allowance (LHA), and called on ministers to hike the rate to cover average local private rents.
LHA rates currently cover the lowest third of market rents in an area following the increase.
Shelter said families in a two-bedroom home could still face a shortfall of up to £1,227 a month in London.
It warned that by not further increasing LHA rates, the government risks “spiralling levels of debt, poverty and evictions further down the line”.
Courts in England and Wales have suspended all possession hearings for at least 90 days from 27 March, effectively putting a pause on all evictions.
Under the government’s Coronavirus Job Retention Scheme, employers are being encouraged to furlough staff they cannot keep on at full pay, with grants available to cover 80% of wages up to £2,500 a month.
A spokesperson for the Ministry of Housing, Communities and Local Government said: “The government has put in place unprecedented measures to support tenants from getting into financial hardship or rent arrears, including protecting millions of jobs up and down the country and increasing Universal Credit and housing allowances.
“Emergency legislation is now in place so no social or private renter can be forced out of their home – with landlords unable to start proceedings to evict tenants for at least the next three months. We have the power to extend this if necessary.”
YouGov surveyed 498 adult private renters in England online between 24 and 27 March.
Shelter’s estimates for how many people could be affected nationwide are based on a total adult population of 8,674,570 private renters in England.
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