Universal Credit changes welcomed, but more is needed to restore confidence

by | Dec 5, 2017 | Press Release, Welfare Reform & Homelessness

Changes to Universal Credit have made landlords more willing to rent homes to claimants but the Government needs to do more to address their concerns.

Research by the Residential Landlords Association’s (RLA) research lab, PEARL, has found that 36 per cent of private landlords have more confidence to rent to tenants on Universal Credit as a result of changes announced in the Budget.

However, the same survey found that 73 per cent of landlords still lack confidence that they can recover arrears that can occur when tenants move across to universal credit.

As MPs today debate Universal Credit, the RLA is calling for action to ensure landlords can reclaim any rent arrears built by Universal Credit claimants who move out of their property. At present there is no mechanism to do this.

The RLA is looking for private landlords to be treated the same as those in the social rented sector by ensuring they can access basic information such as whether and when a tenant is receiving Universal Credit. This is important to enable landlords to work with tenants to organise suitable rent payment schedules.

The RLA’s Vice Chair, Chris Town, said:

“Ministers have clearly been listening to concerns and we welcome their reforms to Universal Credit which have given landlords more confidence in the system.

“That said, there are still problems around rent arrears and recent tax hikes mean that landlords are less able to cope with difficulties in collecting rents.

“Without further reforms we cannot say ‘job done’ on Universal Credit.”

Notes:

  • After the Budget Announcements on Universal Credit. RLA PEARL undertook a short survey with landlords known to the RLA. Over a 5 day period, 545 landlords responded to the survey.