Renters in London are finding it increasingly difficult to pay their bills. According to debt advice aid organization StepChange Debt Charity, millions of private renters risk losing their homes due to rising rental payments. Greycoat’s CEO gives us a glimpse into the real estate dilemma that’s left almost half of London’s private tenants unable to pay rent.
The Law Centres Network liaised with major charities Citizens Advice, Christians Against Poverty, Money Advice Trust, and StepChange to lobby for greater private renter protections. There´s more on this concern according to Greycoat specialists.
In a letter addressed to The Department for Leveling Up, Housing and Communities’ (DLUHC) Secretary of State, Michael Gove, the charities urged the government to prioritize the Renters (Reform) Bill and protect private renters from problem debt. As Greycoat shares: “Private renters do not have similar protections to social tenants despite many having indistinguishable financial profiles.
The Pre-Action Protocol supports social tenants if they have rent arrears while private renters are often served section 21 notices which do not consider a tenant’s financial strength.” Says Greycoat’s CEO. “Major charities are calling for a Tenancy Support Programme for private tenants since they can’t access the limited supply of socially rented homes.” the real estate expert adds.
Section 21 of the Renters Bill gives landlords the right to evict private tenants with two months’ rent arrears automatically. They aren’t mandated to offer any support or develop a repayment plan. A support programme for private renters would entitle them to repayment schemes similar to those of their socially housed counterparts as Greycoat finally states. This scheme would allow judges to suspend eviction notices if landlords rejected reasonable repayment plans before evicting tenants.