Buy-to-let landlords are demanding that the government urgently addresses the crisis in rent arrears by introducing a financial package to help support those who have fallen behind on payments during the pandemic.

According to a new survey,  the chancellor’s failure to get a grip of the rent debt crisis has left thousands of renters facing problems finding an alternative home because of damage to their credit scores.  

With the government refusing to support tenants and landlords in tackling Covid-related arrears, this research estimates that around 210,000 tenants may face severe difficulties in getting landlords to let to them in future. 

Ahead of emergency restrictions easing in the private rented sector on 1 June, results from this new survey of over 2,000 private renters in England and Wales show that 7% have built arrears since lockdown began in March last year.

A quarter of those with arrears said that their landlord had attempted to reclaim these by seeking a court order. Such orders, where successful, damage a tenant’s credit score – an outcome which makes it for harder for them to access new housing in the future.

The data, compiled by research consultancy Dynata for the National Residential Landlords Association (NRLA), shows that the average amount of rent owed by those in arrears during the pandemic is now almost £900.

The figures also show that more than 80% of renters now in arrears were not behind on their rent payments when the pandemic began. Some 30% of those who are presently in arrears now owe £1,000 or more.

The majority of tenants in arrears do not qualify for emergency housing support provided by councils to help those in receipt of benefits.

The government has also frozen housing benefit rates in cash terms, a policy the Institute for Fiscal Studies has branded as “arbitrary and unfair.”

Ben Beadle, chief executive of the NRLA, said: “As the private rented sector moves out of lockdown measures, the Chancellor has failed to provide tenants with the support they need. This is especially the case for the majority of those in rent arrears who do not qualify for benefit support.

“Without urgent assistance, many tenants face the prospect of losing their home needlessly as landlords struggle to shoulder the cost of arrears. Affected tenants also potentially face the negative impact of damage to their credit scores.

“The government needs to develop a financial package which ensures that benefits cover the rents of those in receipt of them. For those who do not qualify for benefit support, an interest free, government guaranteed tenant hardship loan should be established, similar to those in Wales and Scotland.”