Momentum and thousands of Labour members have accused Keir Starmer of “failing renters”, calling on him to back an immediate cancellation of rents for those whose income is affected by the coronavirus crisis. Starmer’s policy is to support an extension of the three-month ban on evictions and give tenants up to two years to pay arrears, which Labour says would help avoid people losing their homes in June. However, activists are calling for a more comprehensive policy to help renters, saying a deferral of rents will push people further into poverty as they face huge rises in what they have to pay each month.
A letter signed by at least 4,000 Labour members, backed by Momentum, the leftwing grassroots group that supported Jeremy Corbyn’s leadership, called on Starmer to improve the policy. Momentum has emailed its 40,000 members urging them to support the letter, which is also backed by Open Labour, a soft-left pressure group, who said: “Deferring rent payments is not enough. We encourage our members to sign and support #CancelTheRent.” In the open letter, the members write: “Deferrals do not confront the loss of income experienced by private renters, nor do they delay the eviction process. Universal credit is too slow-moving and not nearly enough to keep landlords from demanding rent. “Unfortunately, private renters cannot with much confidence look to the Labour party for comfort. While reforms to Universal Credit are welcomed, the Labour Party’s revised position of rent deferrals does not help us as workers. It simply pushes the problem down the road.” It says Starmer’s solutions are “simply not good enough” and amount to “failing renters”, arguing that three months of deferred rent will end up in a 12% rent increase over two years. The letter calls on Labour to “pressure the government to cancel, at the tenant’s request, payments of rent, for any tenant experiencing any drop in income” and “cover, at the tenant’s request, utility payments, for any tenant experiencing any drop in income”. A spokesman for Starmer pointed to a defence of the party’s policy by Thangam Debbonaire, the shadow housing secretary, who said: “The five-point plan aims to prevent arrears and debt primarily if possible and to minimise it and prevent evictions if not. There are huge problems with the housing system, which needs fixing. Right now we are trying to make sure people don’t lose their homes. ”The policy is that the government should support and protect people’s incomes to prevent arrears if possible, and prevent evictions if not. That doesn’t solve the whole housing crisis – that needs regulation of private rental sector, investment in truly affordable homes.”
She also highlighted an analysis by a legal expert that warns of unintended consequences if rents are completely cancelled as the state would have to compensate landlords, estimating the cost to the state at up to £6.4bn a month and claiming it would be “deeply regressive, giving the biggest benefit to those who don’t need it, [with] free money for the already reasonably well-off”. The Green party has used Starmer’s policy on renters as an opportunity to outflank Labour on the left and appeal to renters. Caroline Lucas, the Green MP, said she disagreed with Labour, arguing that “leaving renters struggling with debt is unfair and will increase homelessness”. She said: “Instead, forgive arrears and let landlords who need it claim for support. Most renters already stretched and won’t have the ability to service two years of repayments.”