JRF warns UK risks a ‘two-tier recovery’

The Joseph Rowntree Foundation (JRF) is warning that the country risks a two-tier recovery from the pandemic as new research highlights the disproportionate risks facing people who rent their homes.

On the day the eviction ban ends (31 May), a large-scale survey by the think tank has revealed around 400,000 renting households have either been served an eviction notice or have been told they may be evicted (5% of all renters).

And around a million renting households are worried about being evicted in the next three months (11% of all renters), half of which are families with children.

The temporary ban on bailiff-enforced evictions introduced in March 2020 and extended several times since, has provided much-needed security to renters at a time of profound economic and social disruption. But the new survey of over 10,000 households, commissioned by JRF and conducted by YouGov, reveals clear warning signs that point to a spike in evictions and homelessness as the ban lifts.

In addition to the 400,000 already expecting to be evicted, around 450,000 households are currently in arrears with rent and almost a fifth of this group (18%) have been in arrears for more than four months, meaning landlords in England will only be required to give four weeks’ notice of eviction when the ban lifts.

‘The government’s stated aim to support more people into home ownership does not stack up with its decision to ignore the growing issue of rent arrears,’ said JRF economist Rachelle Earwaker.

‘For the 450,000 families locked in rent debt, the prospect of securing a mortgage is simply unimaginable and worse still, many will now struggle to secure a new home in the private rented sector just as the eviction ban ends.

‘High levels of arrears are restricting families’ ability to pay the bills and forcing many to rely on hidden borrowing. This is not only deeply unjust, it is also economically naïve, and risks hampering our economic recovery, which is reliant on household spending increasing as society continues to reopen.  The government’s decision to provide a generous tax break to wealthier homeowners through the stamp duty holiday while failing to protect renters points to a worrying two-tier recovery in which those who were prospering prior to the pandemic will continue to do so, while those who have been hit hard will sink even further behind.

‘The cost of boosting support to tackle rent arrears is a fraction of the cost of the stamp duty holiday. If we are to experience an economic recovery which benefits everyone across the country, the government must urgently take action on rent arrears.’