Almost two-thirds of private landlords with tenants receiving Universal Credit have experienced them going into rent arrears, according to new research.

Based on responses from over 2,200 landlords, the Residential Landlord Association’s research exchange, PEARL, has found that 61% of landlords with tenants on Universal Credit have experienced them going into rent arrears. This is up from 27% in 2016.

The research found that on average Universal Credit tenants in rent arrears owed almost £2,400, a 49% increase compared to last year. 

Over half (53%) of landlords with tenants on Universal Credit applied for direct payment to be made to them instead of to the tenant, known as an Alternative Payment Arrangement (APA). Where successful it took, on average, over two months for this to be organised, on top of the two months arrears already accrued. This has caused arrears to build up substantially.

Those landlords that have to wait for two months arrears before they can apply for direct payment are reporting that on average the APA process takes 9.3 weeks. This when added to the initial two months arrears accrued means that landlords are on average owed four months’ rent before they are successfully awarded direct payment.