I know everyone's attention is understandably distracted - but there's a massive issue building up here in the UK because people and businesses simply can't pay the rent. Renters, landlords and homelessness organisations say the government must get a grip. /1
The National Residential Landlords Association, The Big Issue and Ride Out Recession Alliance, Shelter, ARLA Propertymark, the Nationwide Building Society, and the debt charity StepChange have put out a statement for immediate release... /2
“Many thousands of private renters and landlords across the country now face rent arrears due to the impact of the pandemic . Ministers have failed to address the core problem of debts which have built despite the financial package put in place so far... /3
"Indeed, the Chancellor confirmed that housing benefit will not be linked to the cost of renting for future years. Renters, landlords and letting agents cannot be expected simply to muddle through indefinitely where they face these financial difficulties... /4
"The Government needs to develop an urgent package to help renters in paying off arrears built since March last year. Without further action, debts will continue to mount, making it far more difficult to sustain tenancies and keep renters in their homes after the pandemic.” /5
@hmtreasury's Furlough and SEISS schemes help with wages and self-employed incomes. But they don't cover the rent and other costs. Tenants can't afford to pay - risking eviction in the future - and landlords don't have income - risking many of them going bust. /6
I'll be asking @hmtreasury what their plan is to tackle this huge issue. /7
• • •
Missing some Tweet in this thread? You can try to
force a refresh
There's more today on the weirdness of a housing boom in the midst of the worst economic crisis in 300 years, helped by temporary tax breaks that will expire - probably before Lockdown3 comes to an end.
It's always puzzling why people aren't more repulsed when lenders report "soaring" house prices; we wouldn't, for example, welcome "soaring" gas or electricity prices - or soaring bread prices. But in any case that's what Halifax says they have been doing: bbc.co.uk/news/business-…
"Soaring" sounds very different if you're hoping to be a first-time buyer than if you're a potential seller who thinks 'ah - freebie time'. That something for nothing mentality has led politicians for decades to think it's bad politics to have prices fall.
The Bank of England's Financial Stability report didn't seem to have many headline grabbers. And it didn't if your main concern is - are the banks strong enough to withstand the current twin crises Covid and Brexit? (answer - they can absorb £200bn losses - so probably 'yes'). /1
But there's some shockers in the detail. Whereas big corporates have had plenty of cash, even repaying bank loans or business rate relief, it's a very different story for the small and medium-sized businesses who employ most of the working population. /2
Smaller fims are now in hock to the banks like they've never been before. Lending to UK small and medium-sized enterprises (SMEs) in the year to October was more than 40 times higher than the 2016–19 average. /3
Rishi Sunak’s come under repeated fire in the House of Commons over the millions of people excluded from support - with at least 10 questions on the issue in @hmtreasury questions just now. His response? “I don’t agree that those people have been excluded...
“There are many different ways this government has provided support to many people...”
“But surely the Chancellor can understand these people do not have any money. They have not benefited from any government schemes...why not accept he’s made a mistake?” - Chris Elmore MP.
And again from Paul Blomfield MP - citing a constituent who opened a new bar in the summer and can't access furlough because it wasn't registered for the first scheme. "Will he recognise the problem?". RS's answer implies no - he thinks he's done enough.