Renters across the country are being confronted with an economic struggle like nothing they have ever faced. While we welcome the government’s decisions to temporarily ban evictions and restore Local Housing Allowance (LHA) to cover the bottom third of rents, these just do not go far enough.
Our analysis shows that collectively, renters could still face a £55 million a month gap in their rents as people aren’t able to work. This adds up to a £660 million black hole in renters’ finances over the next 12 months if no further action is taken. This puts a squeeze on people’s finances, causing debt and rent arrears – and unless something is done, it will also lead to huge numbers of evictions and homelessness once the evictions ban ends.