Private rented sector landlords in the UK do not support the Government’s welfare reform plans for housing benefit according to a survey from the Residential Landlords Association (RLA) and the Scottish Association of Landlords (SAL).
It revealed that 65.2% of landlords do not support the Government’s plans for Universal Credit.
John Blackwood, director of the SAL, said: “It is clear that the uncertainty around the Government’s plans for universal credit is having a damaging impact on the private rented sector.
“Tenants on benefits need protections in place to ensure their rent is paid when things get difficult, whilst landlords need assurances that rent arrears won’t mount up. The basis of trust upon which the sector depends is being eroded by the Government’s plans.”
The survey canvassed 1000 landlords across the UK and also discovered that 62.3% would not lower rents in return for direct payments and 54.6% said there was not enough shared properties in their areas to cope with the extra demand, as a result of a decision earlier this year to increase from 25 to 35 the age at which housing benefit claimants can claim only for a room in a shared property.
They were also asked how they would respond if the ‘right to demand’ direct payment became only a ‘right to request’, 91.6% said it would make them less likely to rent to those on benefits.
Speaking at the recent National Landlord Day in Edinburgh, Kevin Dodd, Chief Executive of Wakefield and District Housing, said: “We are strongly of the opinion that under any regime tenants should have choice in how to manage their own finances.
“For those who are able to manage their own finances then direct payment as part of universal credit could give them greater financial responsibility. However, for those less able to manage their own finances, there needs to be the option to pay housing costs to the landlord.”