Two in three tenants on Universal Credit can’t pay their rent on time, landlords say
A shock new survey from landlords found that on average Universal Credit claimants who were in arrears owed £2,400 - which is almost a 50 per cent increase on last year
TWO in three tenants who are on Universal Credit can't always pay their rent on time, landlords have revealed.
A shock new survey from property owners found that the number of tenants going into rent arrears had rocketed under the past year to 61 per cent, up from 27 per cent last year.
It found that Universal Credit claimants owed an average of £2,400 - which is almost a 50 per cent increase on last year.
They complained that it took on average two months for officials to pay them their benefits directly - on top of the 2 months of rent that had already accrued.
The study of 2,200 landlords for the Residential Landlords Association found that tenants owed them around four months of cash before they were paid the rent owed.
And one in five of them said their mortgage provider wouldn't let them rent to people who were on benefits.
The average amount owed by Universal Credit tenants in rent arrears has increased by 49% in comparison to the previous 12 months - from £1,600.88 in 2017 to £2,390.19.
Half of landlords with Universal Credit tenants had asked for an automatic payment for the benefits to be paid directly to them.
Some reported that they didn't get paid by the DWP for up to a YEAR.
Can I ask the DWP to pay housing benefit straight to my landlord?
Yes, in certain circumstances.
If a tenant is renting a council house or private association, they have to pay the rent to their landlords themselves.
But some can ask for the benefits to go straight to their landlord - if they have 2 months rent arrears already or if they find it hard to budget due to personal circumstances.
Landlords then have to go to the Department for Work and Pensions to ask for this, or the tenant can request it.
RLA Policy Director, David Smith, said today that the system wasn't fit for purpose and needed urgent review.
The group said that mechanisms needed to be put in place for them to reclaim rent when Universal Credit tenants leave a property owning them money.
He said: “Our research shows clearly that further changes are urgently needed to Universal Credit.
"We welcome the constructive engagement we have had with the Government over these issues but more work is needed to give landlords the confidence they need to rent to those on Universal Credit.
“We feel a major start would be to give tenants the right to choose to have payments paid directly to their landlord. This would empower tenants to decide what is best for them rather than being told by the Government.”
MOST READ IN POLITICS
The Government's flagship benefits system, Universal Credit, is being slowly rolled out across the country, but has been beset with problems already.
Millions more are set to go onto it next year, and it will roll six benefits into one single payment.
Brits have already had to wait months for their payments to begin, and some have been forced into food banks and risked losing their homes as a result.
It was also claimed that the new system could fuel domestic violence too - because the payments for whole families are only paid into one bank account.
Have you lost money or had trouble with Universal Credit? We pay for your stories. Email us at [email protected] or call 0207 782 4368. You can WhatsApp us on 07810 791 502. We pay for videos too. Click here to upload yours.