Despite the gradual reopening of the economy through 2021, StepChange polling finds that private rent debt has not reduced from the £360 million owed in November 2020

Debt advice charity also warns that more than 200,000 private renters now expect to lose their homes as they can't keep up with their rent

Despite the gradual reopening of the economy through 2021, StepChange polling has found that the total private rent debt level remains at £360 million.

The result of an online survey of more than 8,000 adults between 27 August 2021 and 1 September 2021, StepChange says that the figures show that while some renters are optimistic about recovery, with a quarter (24 per cent) expecting to find more work in the next 12 months, for many in entrenched debt, work will not necessarily avert financial difficulties.

In addition, StepChange highlights that -

• around half a million private tenants have around £360 million rent debts, the same figure as polling for Citizens Advice in November 2020 using the same methodology;
• 225,000 private renters (one in ten) now expect to lose their homes as they can't keep up with their rent, and many see no way out of entrenched pandemic-related difficulties; and
• more than half a million (558,000) private renters in arrears who are claiming universal credit say they’re already struggling to pay rent arrears or will struggle due to the removal of the £20 uplift.

As a result, StepChange warns that, unless the government changes tack on the universal credit uplift, and delivers an urgent package of targeted support such as the grant schemes launched in Scotland and Wales, many private renters face long-term housing insecurity and prolonged debt harm, including threats of court action, homelessness and eviction.

Chief Executive of StepChange Phil Andrew said -

'For 18 months, renters have been at the sharp end of the pandemic. Sadly these figures show a huge number of people worried about how they will keep up with their rent. While the end of restrictions will allow some get back to their feet, thousands are still facing a mountain of rent debt they are unable to address alone.

The government’s own research shows that private renters have been hardest hit by the pandemic, and that numbers in rent arrears have more than doubled since March 2020. Covid support schemes, while a lifeline for many, haven’t been able to help renters address their arrears and with cuts to universal credit and the end of furlough imminent, there is a real danger of thousands losing their homes.

That’s why StepChange is calling for a dedicated financial support to help ensure renters can safely wind down Covid rent debts and keep their homes. By establishing a dedicated rent debt fund, and by scrapping the planned universal credit cut, the government can avert the threat of a rise in evictions, problem debt and homelessness that will compound financial and social problems and hamper economic recovery.'

For more information, see £360 million Covid rent debt crisis will escalate unless Universal Credit cut is reversed, StepChange warns.