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6 May, 2021 Open access

LSE warns that the Covid-19 pandemic will continue to scar the private rented sector for many years to come

With one in five households in England renting, it is essential that action is taken to ensure that the sector remains sustainable to avoid 'catastrophic' problems in the future

With the number in rent arrears having doubled over the course of Covid-19, the London School of Economics (LSE) has warned that the pandemic will continue to scar the private rented sector for many years to come

In a new report, Homelessness and rough sleeping in the time of Covid-19, the LSE looks at the impact of the pandemic on local authorities in London, the relationship between private renting and homelessness, and the effectiveness of the 'Everyone In' initiative.

However, while acknowledging the initiative's success in bringing people in off the streets and rehousing others from shared facilities, the report highlights the continuing flow of people who have appeared, or reappeared, in need of support throughout the pandemic resulting in far more people needing to be accommodated than expected.

In addition, alongside the rising numbers in temporary accommodation, the LSE points out that around 6 to 7 per cent of private tenants are in arrears, around twice the 'normal' proportion, and that 10 per cent are unemployed, which is double the average rate. Using projections of unemployment once the furlough scheme comes to an end, the report predicts that more than 400,000 tenant households might be expected to be in significant arrears at the end of the year, and that almost all of these could be at risk of losing their home when the suspension on eviction proceedings comes to an end on 31 May 2021.

As a result, calling for greater protections for private tenants, the report recommends a series of policy changes including - 

However, warning that, unfortunately, these solutions are only partial, Associate Professor of Urban Planning and co-author of the report Dr Nancy Holman says- 

'In a crisis of this magnitude there are no easy answers. Even if there is a rapid transition back to normality, the long-term arrears and loss of credit-worthiness among tenants and loss of income and confidence for landlords will continue to scar both individuals and the private rented sector for many years to come.

One in five households in England rent, with many having no other option. If we are to avoid catastrophic problems in the future, we must ensure that the private rented sector remains sustainable.'

For more information, see 400,000 private tenants in danger of rent arrears from lse.ac.uk