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Landlords 'misunderstanding' the impact of Universal Credit
By Simon Thompson |
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Fears that thousands of private tenants will be turfed out of their rented homes with the introduction of Universal Credit is leading to sector leaders to raise concerns about the lack of understanding over the issue.
Already, some large private landlords are hitting the headlines after handing quit notices to tenants before the introduction of universal credit in April. Many believe that their rent will not be paid on time because of changes in how the welfare payments are made.
Indeed, the National Landlords Association (NLA) has carried out a survey that reveals that while many of the UK's landlords know that the current benefit system is being revamped they are not entirely clear on what will happen.
Landlords don’t understand Universal Credit
The Association's survey found that only 30% of landlords are aware of the changes to the benefits system and what universal credit will mean to their business.
Worryingly, 21% of landlords said they were unaware of universal credit and its potential impact.
The move to universal credit is controversial because it will replace six benefits with one monthly payment – the biggest change affecting landlords will see housing benefit being paid directly to tenants rather than to the landlord, as currently happens.
However, the same research found that 20% of tenants preferred to have their housing benefit paid to the landlord to help falling into arrears.
The NLA's chairman, Carolyn Uphill, said: “As the universal credit programme has been progressing, benefit payments haven't kept pace with rents while welfare cuts have been made. This situation is creating concern among landlords that their tenants could fall behind on rent as their finances are squeezed.”
She added that landlords are unlikely to allow tenants in receipt of universal credit to move into their property, particularly with demand growing from other types of tenants.
Government must rethink housing benefits payments
The NLA is urging the government to rethink its position of paying housing benefit to tenants rather than the landlord and retain the current situation which will give landlords the confidence they need that the rent will be paid on time.
A similar survey by online letting agent Makeurmove.co.uk has found that one in three landlords were unaware of what universal credit was and when it was being implemented.
Whereas 40% of landlords said they had heard of the scheme and just 27% said they had a full and proper understanding of what universal credit was and its impact on their business.
It's this lack of understanding, says the firm, which helps to explain why some landlords are refusing to accept LHA tenants.
Company director Richard Francis said landlords are clearly worried that under the new scheme they will see an increase in rent defaults which is prompting many to say they will not support housing benefit tenants.
He added: “Rather than being paid weekly, universal credit will be paid monthly with the aim of helping recipients to learn how to budget properly.
“Private landlords, currently, accommodate more than one million people who have all or part of their rent paid for by the state. The rental market is growing with more than 300 people looking for housing benefit every day to help keep a roof over their heads.”
He said that unless this issue was addressed properly, then increasing numbers of private landlords would refuse to accept tenants which in turn would create a 'major problem' for the government.
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Landlords offload 4,000 BTL properties a month |
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Spiralling landlord costs has led to nearly 4,000 buy to let properties being sold every month last year, official figures reveal.
It's the first drop in the number of rental homes being available in the UK for 18 years.
The figures are contained in a Ministry |
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Labour pledges a ‘living rent' for tenants |
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The Labour Party is pledging to introduce a ‘living rent’ for tenants that will be at one third of the area's local average income.
This will make the homes dearer than renting social housing but cheaper than renting from a private landlord.
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The best areas for rent growth revealed |
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For those landlords wondering where the best and worst areas in England for rental growth are, then a new survey has revealed all.
Landbay says that the average rental property grew by 0.64% in England in the 12 months to April.
With rents fall |
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Landlords warned - prepare for more regulation |
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Landlords in England are being warned that they should prepare for more regulation after the government published a consultation.
The warning comes from Tim Miles who is a partner at law firm Clarke Willmott.
He says that the Government is cons |
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Research reveals that 2017’s rents fell in real terms |
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The rents being paid to landlords in all parts of the UK fell in real terms during 2017, research suggests.
The findings from HomeLet reveal that rents in November rose by 0.7%.
That's the 11th straight month that rent increases have fallen beh |
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Rents for the UK’s rental properties rise by 2.1% |
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The average rent for a buy to let property grew by 2.1% in the year to September, an index has revealed.
The figures from HomeLet show that the average rent now being paid is £927 every month.
For landlords in London, rents rose by 1.9% o |
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Landlords start exiting the buy to let sector |
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One leading firm of letting agents is warning that buy to let investors are beginning to exit the sector.
The warning comes from Belvoir who say that while the numbers of landlords leaving is not huge, there is a trend appearing.
The firm's chi |
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