Landlords Refuse Tenants on Benefits

Landlords Refuse Benefit Tenants

Universal credit is responsible for tenants on benefits falling
behind with rent, according to the Residential Landlords Association (RLA).

The RLA said 54% of landlords had reported tenants on the
benefits go into arrears in the last year.

The BBC reports that Debt charity Turn2Us warned universal
credit will lead to "more rent arrears, more evictions and more
homelessness".

The Department for Work and Pensions (DWP) said landlords
had reported seeing fewer claimants in arrears in the last year.

David Smith, policy director for the Residential Landlords
Association (RLA), said it was taking too long for people struggling on
universal credit to get the help they needed.

"The system only provides extra support once tenants are
in rent arrears. Instead, more should be done to prevent tenants falling behind
with their rent in the first place.

"Only then will landlords have the confidence they need
that tenants being on universal credit does not pose a financial risk they are
unable to shoulder."

Tenants have also experienced difficulty if finding
landlords who will accept benefits claimants.

David Samson, welfare benefit specialist at Turn2Us, said
the large number of people on universal credit in rent arrears was "a
devastating example of the crippling issues with the benefit".

"The five week wait for universal credit married with
the reality that it is just less generous than previous benefits will only
conclude with more rent arrears, more evictions and more homelessness unless
the government takes immediate action to fix some of the glaring
problems."

Chris Town, a landlord in Yorkshire for 31 years, told the
BBC that his tenants are "all worried about universal credit; they're
terrified they're going to lose the benefit".

The experienced landlord said the introduction of the
benefit since 2018 had caused many problems.

"You give people time to sort things out, but I'm
waiting three months for arrears in some cases."

He added that there are problems getting access to
information. "Up to now with housing benefit we've dealt with the local
authority directly which means information was easy to access.

"Under universal credit it's not as accessible and
you're not really sure what's going on."

Universal credit has replaced six benefits, including
housing benefit, and merges them into one payment. It's gradually being rolled
out around the country, but there are concerns that some claimants have seen
their overall support cut.

RLA research revealed that 68% of landlords said there was a
shortfall between the cost of rent and the amount paid in universal credit.

Are you a landlord with tenants on benefits or a tenant
claiming Universal Credit? Money Tips would like to hear your views.

Word of the Day

Fiscal

A term used in public or government financial matters.
Fiscal year, fiscal report.

There are more examples and practical steps to getting rich and
being happy in my book,
Yes, money can buy happiness, I cover
the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more.
Check it out on Amazon http://bit.ly/2MoneyBook.