Rent arrears

[Pixxie7]

According to news night there are thousands of people who have fallen behind with their rent. Whilst I appreciate some are genuine I can’t see how anyone on benefits or on a pension can have been that badly affected. Similarly with people furloughed.
So my question is are a lot taking advantage of a bad situation.?

Calling someone ignorant is rude in my opinion.

Where did you get your data from? I can't find anything that breaks down rent arrears into those on full benefits (not working at all and therefore no change in income) and those on low income plus top up benefits (potentially a sudden drop in income)

Does that information exist or are you just assuming?

Honestly depends on how it is estimated. The city we moved away from a couple of months ago had a market crash way before everywhere else, so lots of people with negative equity. This includes ourselves and quite a few friends who moved away for jobs in different places so we know a surprising number of 'accidental landlords.'
In comparison to many, we are in a good-ish job market so none of us charged rent if our tenants lost their job due to Covid. That was an offer all of extended straight at the beginning but then, none of us work with letting agents (for the obvious reason that 99% of them are pure evil). Not sure if that would show up in the statistics as rent arrears but I guess it would?

I am just making an assumption that given the help provided by the government plus the fact that a lot of people’s income hasn’t really changed, I am surprised so many are in arrears.

People furloughed received 80% of their salary so may be a short fall but not months of not paying
Nope not 80% of their salary, 80% of their salary to a maximum of 2.5k

Are you a landlord?

Millions of people don't havr 20 per cent of their salary free and live hand to mouth.
Equally, many depend on overtime or commission or a second job.
Some of us got fuck all.
Hth.

Sadderthaneeyore
2 x 80% income =.... 80% income, not 60%. Eg if you normally got £1000 each and now get £800 each, combined that's £1,600, which is 80% of your previous income of £2000. HTH

catsup
As for those on pensions it's been an absolute nightmare getting on the 'vulnerable list' for delivery slots from supermarkets. One of my parents was fortunate to make the criteria, but the other didn't make the cut. They're very independent/drive themselves, and would normally pootle to the local supermarket for the cut price labels. They resorted to one of the very pricey companies that do the 'ready meals for the elderly' to stock up their freezer in the end 😳

Why didnt they go to the supermarket as they were always allowed to?! If they didnt make the cut for priority delivery slots theres a reason- they were not clinically vulnerable and could have attended the supermarket throughout, wearing a scarf and gloves to reduce risk. I couldn't get any delivery slots at all, like millions I I continued to do my weekly shop in person.

Nope not 80% of their salary, 80% of their salary to a maximum of 2.5k

That's because someone on 2.5k a month should not be living in dire straits and should have savings etc. I knew loads of people capped at 2.5k, most had mortgages as people at that income level often will, and could access payment holidays, others could afford their rent but obviously their disposable income has been hit.

Pixie7

I kind of get your point. There's been money thrown at this. Yes there are pockets of people who've fallen between the cracks but by and large, huge rent arrears should not be widespread.

@Pixxie7

Calling someone ignorant is rude in my opinion.

It’s not. It’s a fact. Do you know what it means? It means you’re lacking knowledge in this area, and you are.

My friend was furloughed but his wage was capped at well below 80% of his actual salary.

I had 2x dd at home 24/7. My bills went through the roof

My groceries were more expensive due to offers being removed and lack of cheap brands.

I’m on a key meter. If I don’t put electric in, we have none. I can’t delay that bill.

I’m not behind on rent but I can easily see why people would be.

I think most people replying missed were poster said some people .
Yes some people are taking the piss and using it to there advanatge .

They didn't attend the supermarket as usual because they're 84 and it coincided with them having an outbreak of shingles off the back of a pretty bad chest infection. They weren't on the vulnerable list as these were recent health conditions. But obviously enough concern to them regarding their compromised immune system to not want to venture out.

Yeah, some people will have. But most people won't.

Tory, right?

"I am just making an assumption that given the help provided by the government plus the fact that a lot of people’s income hasn’t really changed, I am surprised so many are in arrears."

The thing is, you keep repeating this view. Posters keep explaining why people might be struggling with their rent and they've cited many, many valid reasons - but you just keep saying the same thing. Whether you mean to or not, you don't sound as if you're listening and you are coming across as judgemental.

I'll give it a go.

There are lots of people who were barely scraping by, juggling paying bills and rent and buying food. Some weeks having to decide whether to buy food or pay the electricity bill. Then COVID lockdown hit. Income dropped by 20% - or in some cases was lost completely. Not everyone was supported by a scheme. Even those whose income didn't change, their monthly costs will have rocketed. If you're already not coping very well, the increased costs alone will be enough to tip you right over the edge.

The figures I saw suggested 5% of renters were in arrears. Relatively speaking, that's a small proportion.

It sounds as if you're lucky to have never experienced true poverty where you can't sleep at night for worrying about how you're going to pay for the essentials.

It's a sad reality for many people and higher costs and/or lower income is all it takes to completely wipe out any chance of continuing to scrape through.

OP, I get where you are coming from. Costs will have gone up for a lot of people though (including landlords). I'd hope that the people having difficulties with rent would at least part pay. Some people will definitely be taking the piss for sure. Many won't.

So we've had the lockdown police, then the essential shopping police, followed by the mask police. Now we have the debt police.

Why isn't losing any sense of empathy or understanding for the circumstances of others top of the covid symptom list?

NC for this as identifying but I am a long term mumsnetter.

I let out my old flat. I had to move for work but intend to go back when I can. My tenant is a painter & decorator. He hasn't paid rent since March. Not a penny. So he's now 5 months behind. He was giving excuses for the first three months - just waiting for the govt. help to come through, can't get to the bank etc etc. I waited in good faith. Still nothing.

He is eligible for the self employed furlough scheme, he's told me that and no reason why he wouldn't be. He has been subletting too as I met a flat mate I didn't know anything about - so there is income there. I have not seen a penny of it. I am a reasonable person and would have negotiated a reduction at the start, now I'm so cross and just want him to move on. I served an eviction notice a couple of weeks ago, around 8 weeks after I could have as believed him that he would pay something soon. Eviction takes three months notice now rather than one month. I suspect he won't pay a penny, wait to get physically evicted and he will be around 8 months rent free by that time and I will have to pay approx £1500 legal fees to make all that happen.

Meanwhile, although I got the 3 month mortgage holiday - I still owe that money to the bank in the end and have had to pay out other costs too - maintenance on a roof leak, gas safety, council licensing registration all within the last three months. I had to make a trip back to try to track down this guy to talk to him a couple of times, he promised me he'd be paying something soon...and nothing. He spent a lot of time telling me how tough it was, describing his other bills that he was paying telling me it was tough, he'd had to sublet! I am finding it really hard, I'm lucky that my job is stable but I've had to juggle and access savings to carry the additional costs.

So yes, I think some people are taking advantage. The letting agent told me that it's very few though. They have around 600 tenancies they manage and he said 2/3 are like this, They say the majority have paid as normal, a good few have done a deal with the landlord where they have paid what they can for now. I guess this category will technically count as in arrears - some landlords apparently have accepted a reduced amount, some have agreed reduced for now and a repayment plan. So from the perspective of a struggling accidental landlord with a tricky tenant YANBU.

not everyone has received help
plenty of people have lost their jobs/given up their jobs due to fear of the virus.
they may be over the limit to receive any help.
they may have had to wait for any help.
yabu and ignorant.

mine, and plenty of others, had dc come home,
consuming more food.
not much choice for food in supermarkets. an absolute increase in grocery spending.
masking buying
hand sanitizer buying.

@Pixxie7 people furloughed were paid 80% of their salary to a maximum of £25,000, some people earn a lot more than that and live to their means, so that's a big drop.

Also, the furlough amount is now less than 60%.

Can you honestly not see why people are in trouble.......really?

Also @Pixxie7 what research have you done to find that it's people on benefits that have a pension that are in arrears?

Let me think.......none!

Stop making assumptions and deciding that people are taking the piss, have some empathy?

My comments about benefits and pensions are based on the fact that their income would have essentially stayed the same.

You do understand that the majority of benefit claimants are in work - just poorly paid and in many cases on zero hours contracts. So it is not a fact that their income would have essentially stayed the same.

I have not said that it is people on benefits, the only reason I mentioned them was as example of people who could potentially get in arrears. I have all the empathy in the world for people who are struggling. However as stated by a pp from personal experience there are people taking the piss.