Residential landlords are concerned about the impact that Universal Credit will have on the private-rented sector with 70% of landlords who let to tenants in receipt of Local Housing Allowance (LHA) being worried about the implications of the welfare change, according to research by the National Landlords Association (NLA).

David Salusbury, Chairman of the NLA, said: “Landlords are understandably concerned about the impact of Universal Credit, particularly as the London trials have seen deductions from LHA payments to cap a household’s overall benefits package. The cap effectively takes away the money intended to ensure rent is paid.

“The knock-on consequence is that landlords, particularly those who specialise in letting to tenants in receipt of housing support, could themselves face difficulties if tenants struggle to manage their monthly incomes. It is essential that landlords work with their tenants now to ensure those who are unsure about the impact of the changes are actively seeking advice on budgeting for monthly payments.”

Portfolio size also had an impact on how concerned a landlord is about the impact of Universal Credit as 75% of landlords who have 20 or more properties indicated they were worried whilst for 11-19 properties 55% were concerned compared with 32% and 30% of landlords with 2-4 properties and one property respectively.
Overall 43% of landlords are concerned about the changes.