Around 210,000 private tenants who built arrears during the pandemic may face “severe difficulties” finding new housing due to damages to their credit scores, says a survey by the National Residential Landlords Association.

Seven per cent of private renters have fallen behind with their housing payments since a series of lockdowns began last March, based on court order data compiled by the Office for National Statistics and the Ministry of Housing, Communities and Local Government.

The NRLA says: “Such orders, where successful, damage a tenant’s credit score – an outcome which makes it harder for them to access new housing in the future.”

Its report says the average amount of rent owed by those in arrears during the pandemic is now almost £900.

Over 80 per cent of renters now in arrears were not behind on their rent payments when the pandemic began, the body adds.

The association says: “The majority of tenants in arrears do not qualify for emergency housing support provided by councils to help those in receipt of benefits. The government has also frozen housing benefit rates in cash terms.”

NRLA chief executive Ben Beadle says: “As the private rented sector moves out of lockdown measures, the Chancellor has failed to provide tenants with the support they need. This is especially the case for the majority of those in rent arrears who do not qualify for benefit support.

“Without urgent assistance, many tenants face the prospect of losing their home needlessly as landlords struggle to shoulder the cost of arrears. Affected tenants also potentially face the negative impact of damage to their credit scores.

“The government needs to develop a financial package which ensures that benefits cover the rents of those in receipt of them. For those who do not qualify for benefit support, an interest free, government guaranteed tenant hardship loan should be established, similar to those in Wales and Scotland.”

In March, the Housing, Communities and Local Government select committee estimated the cost of a financial package to tackle pandemic-related rent arrears would be between £200m and £300m.

The Institute for Fiscal Studies criticised Chancellor Rishi Sunak’s move to freeze support for private renter’s in last November’s Spending Review.

The IFS said: “Another expansion the government brought in eight months ago was increasing the maximum amount that low-income private renters can get to help with their housing costs, so that they can afford the cheapest 30% of properties in their local area. They have now announced that those maximum amounts will be frozen in cash terms going forwards.”

It added: “A similar policy over the past eight years resulted in those in some high rent areas getting less support than those in some low rent ones. “It is entirely coherent to decide that the state should reduce its support for low-income renters but doing it in this fashion is arbitrary and unfair, and its consequences will only become more bizarre over time.”

Earlier this month, the Housing department said the £30bn a year it spends on housing benefits was more than any other Organisation for Economic Co-operation and Development country as a proportion of gross domestic product.

It added: “As confirmed in the Queen’s Speech, the government remains firmly committed to longer term sector reform and abolishing Section 21 which will enhance renters’ security and will ensure a better deal for renters, whilst considering the needs of landlords.”