Those who rent from a private landlord, local authority or housing association will have now paid their first instalment of rent since the government-imposed lockdown which may have exacerbated their concerns.
According to the findings, 58% of renters who were working before the COVID-19 outbreak report they have had their employment impacted in some way, and this has provoked further issues. 43% of renters whose work has been impacted have struggled to pay rent, bills or other essentials such as food, and a quarter (25%) have either had to voluntarily leave their home, move in with friends or parents, or request for their tenancy to end earlier than planned to avoid paying rent.
In addition, 73% of landlords are worried their tenants will not be able to pay all or part of the rent. Meanwhile, 70% of landlords are concerned that their tenants will vacate leaving them with an empty property.
Renters already relying on savings to get by
12% of all renters, and 24% of renters whose employment has been impacted by the outbreak, have already had to dip into savings to pay for day-to-day life. Others have been forced to choose between paying rent or buying food:
One in six seeking financial help
Unsurprisingly, COVID-19 has added financial pressure to UK renters, and 17% have sought financial help since the outbreak. This rises to 31% among those whose employment has been impacted, with 13% applying for Universal Credit to help with rent payments and 11% borrowing from friends and family.
Renters want more support – but currently lack awareness about new housing policies
Renters would generally appreciate new policies to support their situation, such as having no energy cut-offs for those who cannot pay their bill (82%), freezing rental increases (80%), advancing Universal Credit payments (76%) and freezing rents (74%).
However, many renters do not know about the current policies that are available to support them. While two-thirds (65%) are aware the government has made £500 million available to fund households experiencing financial hardship, three in five (61%) admit they have no actual knowledge about what that means or what it entails. Furthermore, 43% are completely unaware that the government will increase the housing element of Universal Credit to cover the cheapest 30% of rents in an area. One in five (19%) are also completely unaware that the government has banned new eviction proceedings against tenants for the next three months.
David Cox, Chief Executive, ARLA Propertymark comments: “It’s worrying to see that the vast majority of renters and landlords are concerned about rent payments. Unfortunately, as the COVID-19 pandemic continues, more people may see changes in their income which could leave them stressed about affording rent whilst providing for themselves and their families.
“However, there is lots of Government support available that should allow tenants to continue to pay their rent and landlords to have an income if rent payments do stop. Clearly not enough is being done to explain and highlight these policies, but we would urge everyone to look into these and understand what help they may be eligible for. Both renters and landlords should take full advantage of the Government schemes available during this difficult period.”
James Endersby, CEO at Opinium, adds: “Our research shows that renters are finding it particularly tough. Many have found their employment situation has changed, but their rental payments still remain, and this is already becoming a struggle for some. A substantial number of renters have had to use savings or financial help to get by, and if we are in this predicament for the long term then their problems will only get worse.
“It’s clear that renters do not have the full perspective of their rights and entitlements that are crucial in guiding them through the outbreak, but these measures could make all the difference.”
