Homelessness Report Highlights Reapit Data on Rent Arrears and Eviction Risks
A newly published report by the influential House of Commons Public Accounts Committee has underscored the urgent connection between local housing allowance (LHA) shortfalls and the growing risk of homelessness. Drawing heavily on survey data from Reapit, a leading provider of property technology solutions, the report spotlights critical challenges within the private rented sector (PRS).
Reapit’s evidence, compiled through its client accounting platform PayProp, reveals alarming trends in evictions and affordability gaps. According to the survey, nearly 70% of property professionals issued Section 21 eviction notices due to rent arrears, signaling a direct correlation between LHA rates and tenant affordability. The company’s submission to the Public Accounts Committee warns that failure to align LHA with local rental market rates leaves tenants increasingly vulnerable to financial hardship, eviction, and potential homelessness.
Shrinking Private Rental Stock Worsens Affordability Crisis
The report also highlights a troubling decline in the availability of rental properties, which could exacerbate homelessness risks. Reapit’s 2024 survey data shows that more landlords are exiting the market than entering it. Only 11.9% of rental properties sold by landlords were purchased by other landlords, compared to 54.5% who are selling outright. This shrinking supply is expected to drive rents higher, creating additional challenges for tenants reliant on LHA.
Calls for Reform
Dr. Neil Cobbold, Reapit’s Commercial Director, emphasized the need for collaboration between industry stakeholders and policymakers to address these pressing issues. “The data we’ve provided to the Public Accounts Committee illustrates the stark reality of the PRS. Rent arrears, rather than ulterior motives, are overwhelmingly driving Section 21 evictions. It’s critical for the industry and government to work together on meaningful reforms.”
Dr. Cobbold also expressed concern about the unintended consequences of the Renters’ Rights Bill. He warned that without significant court reforms to expedite eviction processes, landlords are likely to continue selling properties in response to the legislation, further tightening rental supply and driving up rents.
Proposed Solutions
Reapit is calling for a coordinated government strategy to stabilize the PRS and improve affordability. Key recommendations include:
- Credible court reforms to restore landlord confidence by reducing delays in eviction cases.
- Measures to bring vacant properties back into use, addressing housing shortages.
- Revised housing benefit calculations that reflect real-time rental prices, reducing affordability gaps for LHA recipients.
“Without these changes,” Dr. Cobbold concluded, “tenants across the UK will face increasingly unaffordable rents, while landlords shoulder higher risks from an inability to recover properties when necessary. It’s a situation that demands urgent, joined-up action.”
A Call to Action
The findings highlight a growing crisis that requires immediate attention from policymakers. With both tenants and landlords facing mounting pressures, industry experts agree that stabilizing the PRS is key to preventing further homelessness and ensuring a sustainable housing market.
