Industry News
Fears that social distancing rules could leave more homeless people on the streets
P
laces in homeless shelters and emergency overnight accommodation could drop by two-thirds because of
social distancing rules to combat the COVID- 19 pandemic, leaving thousands of rough sleepers with nowhere to turn as winter approaches. Charities and councils are assembling their
plans to provide winter accommodation for growing numbers of homeless people. Meanwhile night shelters are still closed to prevent the spread of the virus and charities fear that if they reopen they will only be able to house a fraction of those they previously could. Housing Justice, the national membership
charity for night shelters, said social distancing meant if and when they reopened, winter shelter capacity would be reduced by around two-thirds, meaning less than 1,000 beds will be available through their network. In previous years the organisation used
dormitory-style shared rooms, but this year it is hoping to offer private rooms or self-contained pods within larger rooms. To stay COVID-safe, Housing Justice will need to rent more space and employ more staff, meaning the cost of running a single shelter will triple in most cases, from around £25,000 for three months to £65,000. Kathy Mohan, the organisation’s chief
executive, said last winter they provided more than 2,600 beds and supported over 9,000 people. “It is certain that cold weather night shelter projects will offer significantly fewer beds this winter, in many cases where shelters can run they will look very different to what has gone before and in some cases projects cannot run at all.” She added it would “present huge challenges
for local authorities and homelessness services as they seek to plug this gap in provision, at a time when homelessness presentations will inevitably increase.” Councils are also making plans amid
uncertainty. Councillor Darren Rodwell, London Councils’ executive member for housing and planning, said: “We’re working flat out to arrange on-going homelessness support over winter … We’re doing everything we can to keep rough sleepers in accommodation – not only for their own safety but also to help minimise the spread of the virus.” “In London, we’re spending an extra £97m on homelessness and rough sleeping this year
A quarter of private landlords have lost rent during the COVID crisis
Almost a quarter of private landlords in England have lost significant amounts of rental income as a result of the COVID-19 pandemic, with overall losses estimated at hundreds of millions of pounds according to a major survey. The research found that 19 per cent of
landlords had lost up to half of their usual rental income as a result of the unprecedented health crisis, while another three per cent had lost more than half. The on-line survey was conducted by pollsters
YouGov for the National Residential Landlords Association. It found the average loss per landlord was between £751 and £1,000. If replicated across the sector as a whole, the total rent income lost by private landlords in England as a result of COVID is between £328m and £437m. The same survey found nine per cent of
landlords plan to leave the rental market altogether with another seven per cent saying they will sell some of their properties over the next 12 months. Of those surveyed, 61 per cent let just one
“It is certain that cold weather night shelter projects will offer significantly fewer beds this winter, in many cases where shelters can run they will look very different to what has gone before and in some cases projects cannot run at all.” Kathy Mohan, Housing Justice
because of COVID-19 and the funding we’ve received from the Government is nowhere near enough to meet these fast-rising costs.” At the height of the pandemic, rough
sleepers were given shelter in hotels and other accommodation through the Government’s ‘Everyone In’ scheme. Housing Secretary Robert Jenrick, claimed
the scheme had taken 90 per cent of homeless people off the streets. But figures collated by outreach workers in London showed numbers of rough sleepers were up by a third during lockdown compared to the previous year.
property and 34 per cent are retired, with rental income representing all or part of their pension. As a result the NRLA argues it is unsustainable to expect landlords and tenants to allow rent arrears to build up indefinitely.
RESCUE PACKAGE The NRLA has been leading calls for an urgent financial package from the Westminster Government to pay off COVID related rent arrears and sustain tenancies, citing examples set in Wales and Scotland where interest free, Government backed hardship loans for tenants to cover rent arrears have been established. Ben Beadle, Chief Executive of the NRLA, said:
“Where COVID has caused difficulties for tenants, the vast majority of landlords have reached agreements with them to avoid problems. That said, most landlords are not property tycoons and cannot be expected to go indefinitely without any or only part of the rent they are owed. “To date there has been no direct financial
support for the rental market, with individual landlords unable to access small business grants or bounce back loans. The furlough scheme is ending, benefits do not cover average rents in any given area and the mortgage deferral scheme only builds up the amount landlords have to pay for the remainder of the term of their mortgage. “The Government needs to step in and
ensure tenants and landlords in England have the same level of support being provided in Scotland and Wales to pay off rent arrears and sustain tenancies.”
www.housingmmonline.co.uk | HMM October/November 2020 | 5
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