Over half of UK private renters face challenges in meeting financial obligations, with one-third relying on credit for rent.
- A recent study by StepChange highlights increasing financial pressures on private renters, underscoring the need for legislative action.
- The Renters’ Rights Bill, while progressive, requires enhancements to adequately protect tenants facing financial difficulties.
- Current proposals, though banning no-fault evictions, still leave gaps that could lead to tenants being evicted for other reasons like arrears.
- StepChange urges for a Tenancy Support Duty to balance tenant and landlord rights, allowing for judicial discretion in eviction cases.
In the United Kingdom, more than half of private renters are currently struggling to keep up with their financial responsibilities, including bills and credit commitments. This financial strain has led one in three renters to resort to credit to afford their rent, according to research conducted by StepChange Debt Charity.
The data suggests an urgent need for legislative changes, particularly in the proposed Renters’ Rights Bill. This Bill, despite its aim to improve tenant protection, does not fully address the financial vulnerability many renters face. For instance, while it proposes to eliminate no-fault evictions, landlords still retain the right to evict for reasons such as rent arrears, which StepChange argues could be misused.
StepChange has called for the introduction of a Tenancy Support Duty, which would require landlords to engage with tenants experiencing financial hardship before proceeding with eviction. This would include attempting to establish an affordable repayment plan for those in arrears, ensuring eviction remains a last resort used only when absolutely necessary.
The importance of such measures is highlighted by the disparity in financial resilience between private renters and the broader population. The charity’s polling found that 18% of private renters have needed to use their overdraft in each of the last three months, compared to just 12% of the wider UK population. Moreover, 22% of private renters indicated they would struggle to cover an unexpected expense of £1,000 without resorting to borrowing or assistance, whereas this concern affects only 15% of the general population.
Richard Lane, StepChange’s chief client officer, voiced concerns regarding the potential impact on renters under the current framework of the Bill. He pointed out that financial setbacks could quickly escalate, placing tenants at significant risk of falling into arrears, and highlighted a lack of sufficient protective measures to prevent eviction in such cases.
Lane emphasised the need for judicial discretion in eviction matters, enabling tenants who are making concerted efforts to recover financially to retain their homes. The suggested Tenancy Support Duty would realign rights between tenants and landlords, ensuring those financially impacted have the opportunity for recovery before facing homelessness, a protection that mirrors existing policies in the social and mortgage sectors.
Adequate tenant protections require urgent enhancements within the legislative framework to prevent financial breakdowns from leading to evictions.
