An Illawarra community services body has praised the announcement of a six-month moratorium on evictions as a result of financial distress from COVID-19.
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However, they have cautioned that measures must be taken to ensure that both tenants and landlords are not left with "crippling" debts.
Tenants will be saved from evictions after a moratorium to deal with the economic impact of the coronavirus pandemic was announced on Sunday night.
Prime Minister Scott Morrison said states and territories would move to put a moratorium on evictions due to financial distress for the next six months.
The Community Industry Group represents the non-government community services industry, and works with organisations which provide support to vulnerable people across the region.
Nicky Sloan, CEO of Community Industry Group said the moratorium will be reassuring for those struggling to meet their rental payments.
"People are feeling particularly anxious at the moment, and with concerns about further job losses and reduced income, some certainty about keeping a roof over their heads will provide a sense of calm in the face of overwhelming unease," she said.
Mr Morrison said landlords needed to work with their tenants and banks on solutions.
"We need you to sit down, talk to each other and work this out," he said earlier this week.
However, the Community Industry Group has expressed concerns that the announcement comes without any supports such as rental subsidies or rent assistance.
"The Prime Minister's announcement was somewhat oblique as to how the moratorium will be implemented," Ms Sloan said.
"He has just asked tenants and landlords to sit down together and 'work it out'.
"What we certainly do not want to see is that rental arrears accumulate over six months, leaving tenants with a massive and unmanageable debt.
"But by the same token, we are aware that many landlords have investments loans which must be repaid."
Ms Sloan called for a rental subsidy to be considered as part of the federal government's ongoing economic stimulus packages.
"A rental subsidy will assist both tenants and landlords, and ensure that we do not see a massive increase in evictions at the end of the six-month moratorium," she said.
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