Proportion of private renters in arrears in spring 2021 was more than double its pre-pandemic rate

Updated Household Resilience Study also shows the proportion of mortgagors in arrears is four times its pre-pandemic level

The proportion of private renters in arrears in spring 2021 was more than double its pre-pandemic rate, according to a new 'Household Resilience Study' published by the Department for Levelling Up, Housing and Communities (DLUHC).

A third and final follow up to the English Housing Survey (EHS) 2019/2020 that was published in December 2020, the Household Resilience Study: Wave 3 report is based on fieldwork undertaken in April and May 2021 - to coincide with the planned easing of Covid-19 related restrictions - and examines issues including trends in mortgage and rent arrears through the pandemic.

Key findings include that in April to May 2021 -

• 7 per cent of private renters were in arrears, up from 3 per cent in 2019/2020 but relatively unchanged from November to December 2020 when 9 per cent were in arrears (the DLUHC says the recent reduction is not statistically significant);
• while more likely to be in arrears than private renters over the course of the pandemic, the proportion of social renters in arrears has not changed in a statistically significant way - 13 per cent were in arrears in April to May 2021 compared to 11 per cent in 2019/2020; and
• 2 per cent of mortgagors were in arrears - double the 1 per cent rate seen in November to December 2020 and four times higher than the pre-pandemic rate of 0.5 per cent (although the most recent rate is lower than the pandemic peak of 6 per cent seen in June and July 2020).

In addition, the report finds that 9 per cent of private renters who were not in arrears said they were very or fairly likely to fall behind with rent payments in the next three months. A similar proportion (10 per cent) of mortgagors who were not behind with their payments reported finding it rather or very difficult to keep up with their mortgage payments in the last year.

Elsewhere, the report highlights that 4 per cent of private renters and 4 per cent of social renters said they risked being evicted in the next six months, with ethnic minority respondents more likely to say they were at risk than white respondents (8 per cent compared with 2 per cent).

For more information, see Household Resilience Study: Wave 3 from gov.uk