Organisations representing tenants, landlords and letting agents have united to urge the government to provide financial help to renters with arrears caused by the fallout of the Covid-19 pandemic.

The ban on evictions will end in just over three weeks, having been extended from 23 August, and now Shelter, the NRLA, ARLA Propertymark, Crisis, Citizens Advice and Generation Rent have come together to ask the government for a short-term package of emergency grants and loans worth £270m to help renters who have lost out on income or been furloughed due to the pandemic.

The proposed fund would be limited to helping tenants pay off any unexpected rent arrears built up since the start of the pandemic in March. The coalition argues this would help both tenants to keep their homes, and landlords who rely on rental income for their livelihoods. It would also prevent rising homelessness adding to the current economic crisis.

Research carried out by Shelter and YouGov last week shows, 322,000 adult private renters (4 per cent) – who were not in arrears prior to the pandemic – have since fallen behind on their rent.

In a bid to avert a homelessness crisis, the coalition is urging the government to act with financial assistance provided in the form of:

• Ring-fenced grants for renters already in receipt of government benefits or thosewho would otherwise be eligible for benefits but have no recourse to public funds – to be distributed by local councils.
• Government backed interest free loans for other tenants who can afford to pay them back, such as those who have been furloughed or are struggling to pay their rent now but will be able to in the future.

Shelter chief executive Polly Neate says: “Ever since this pandemic gripped hold of the country, causing chaos for hundreds of thousands of renters, our services have been deluged with calls from worried families and workers plunged unexpectedly into debt. When the ban lifts, their ability to clear Covid-arrears will be critical if they are to stay safe in their homes.

“We simply cannot afford to lurch into another devastating homelessness crisis now that will ruin countless lives and undermine the country’s economic recovery. This one-off opportunity to provide emergency relief to those renters most in need must not be missed.”

NRLA policy director Chris Norris says: “Whilst the vast majority of landlords and tenants have been able to reach agreements where rent arrears have built, in some cases this has proved difficult. A financial package, such as that we propose today, would greatly assist tenants and landlords to achieve what we all want, namely to sustain tenancies.”