A hitch with Universal Credit (UC) has revealed that landlords across the
country are increasingly considering evicting their tenants.
That’s because the UC portal has been closed to new claimants which means
landlords are struggling to create Alternative Payment Arrangements (APA).
According to Caridon Landlord Solutions, a specialist advice service, the
number of new claims being made by tenants with the Department for Work and
Pensions (DWP) has been ‘overwhelming’ which has led to the DWP closing
access for new claimants to their portal.
The managing director of Caridon, Sherrelle Collman, said: “The DWP must be
under enormous pressure due to the rise in claimants.
“But when renters are struggling to meet rent payments, we know that APHs
have not only significantly impacted on limiting arrears, they help sustain
a tenancy.”
Increase in the number of landlords needing help
She said that there had been a 20% increase in the number of landlords
needing help and many of those were at the point where they were thinking
about serving notice to a tenant because they ‘have no other choice’.
She added that the government has been calling for landlords to support
their tenants during the pandemic but there must be ‘a middle ground’.
Ms Collman said: “Landlords go back and forth on the phone to the DWP only
to be they will be contacted by the case manager, and then they hear
nothing.”
The managing director of Accommodation for Students, Simon Thompson, said:
“This is another headache for those landlords with tenants on Universal
Credit to deal with.
“The government needs to offer more support for landlords, as well as
tenants, and this means either delivering a financial package or providing
the framework for new Universal Credit claimants to work effectively.”
Landlords and tenants do get on
Meanwhile, it has been revealed that landlords and tenants do get on,
according to a new survey.
In the findings published by one lettings management platform, 75% of
tenants say their relationship with their landlord is ‘very good’, or
‘good’.
And 89% of landlords who were questioned said that they have a good
relationship with their renters.
Also, 59% of tenants say that good communication between them and their
landlord is the reason for their strong relationship.
The findings also highlight that 59% of tenants say they deal directly with
their landlord, rather than using an intermediary.
The research also found that 33% of tenants have lived in their rented
property for between two and five years, with 23% staying more than five
years.
