Tenants in arrears need protection under the Renters (Reform) Bill – debt charities

Debt advice charities have written to the Housing Secretary Michael Gove urging him to push the Renters (Reform) Bill through Parliament – and add stronger protections for tenants in rent arrears.

The debt advice organisations — StepChange, Money Advice Trust, Citizens Advice and Christians Against Poverty — say that the new Bill offers a ‘repeat arrears’ ground for eviction.

Instead, the Bill should, they claim, offer protection for tenants struggling to pay rent.

That would see landlords offering a repayment schedule for the arrears to be paid before an eviction process can start.

A ‘Tenancy Support Programme’ should be introduced

The charities say a ‘Tenancy Support Programme’ should be introduced to match a system in place for social tenants in arrears, the ‘Pre-Action Protocol’.

That would see landlords having to take ‘reasonable steps’ to support a tent in financial difficulty – and sustain a tenancy ‘wherever possible’.

The steps would include referring a tenant to benefits advice and agreeing to an affordable arrears repayment plan.

The charities say that 72% of adults in the UK agree that a private landlord should be required to offer a tenant a repayment plan before the eviction process can begin.

‘Millions of private renters on the cusp of falling into problem debt’

The chief client officer at StepChange, Richard Lane, said: “We’re currently experiencing a crisis of housing affordability which is leaving millions of private renters on the cusp of falling into problem debt simply because they do not have the income to cover exorbitant rents alongside rising essential costs.

“While a mortgage holder or social tenant has the security of knowing that their lender or housing provider will follow a process of engagement and support if they fall into a difficult spot with their finances, private renters are not afforded the same protections.”

He added: “We see far too many financially vulnerable private renters who should be in socially rented homes, with living costs alone forcing them to resort to borrowing.

“It’s essential that they’re provided with dignity and security to stay in their homes should they be faced with a life shock that impacts their finances.”

‘Reform of the private rental sector is long overdue’

The acting deputy chief executive at the Money Advice Trust which runs the National Debtline, Jane Tully, said: “Reform of the private rental sector is long overdue, and the government’s intention to deliver greater security for tenants is welcome.

“Proposals as they currently stand, however, do not get close to providing the protections needed for private renters.”

She adds: “At National Debtline we hear the lengths people go to protect their tenancy, including going without essentials in order to prioritise their rent.

“With rents rising and many household budgets at breaking point, it is only right that reasonable steps should be put in place to sustain tenancies.

“Changes to Ground 8A are needed now to reduce the threat of unnecessary evictions and to bring safeguards in this sector in-line with those granted to mortgage holders and social tenants.”

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