Benefit cuts hitting almost one in 10 landlords - claim

Almost 10 per cent of private landlords letting properties to Universal Credit claimants have experienced at least one tenant having difficulties paying rent due to benefit cuts.

That’s the conclusion of a poll conducted for the National Residential Landlords’ Association.

In October last year the government cut Universal Credit by £20 a week following a temporary increase in response to the pandemic.

Following this announcement, a new YouGov poll of private landlords across England and Wales for the NRLA shows the extent of the cut’s impact on tenants in receipt of benefits.

Of those landlords currently letting to a Universal Credit claimant, or who had done so last year, nine per cent reported having at least one tenant experiencing difficulties as a result of the cut.

According to official statistics, of those private rented households in England and Wales receiving support through Universal Credit to pay their rent, 55 per cent had a gap between the support they received and their rent payments.

The NRLA is warning that this will only become worse as a result of the Government’s decision last year to freeze in cash terms housing cost support.  

As a result, in the years ahead the level of benefit support available will be able to cover the rent on ever fewer numbers of properties.

As many households face a cost-of-living crisis, the NRLA argues that a benefits system which property supports tenants is of critical importance. To that end it is calling on the government to reverse its damaging decision to freeze the Local Housing Allowance rate and ensure it properly reflects market rents.

Association chief executive Ben Beadle says: “Benefit payments are failing to give tenants or landlords confidence that they will be able to cover rents. This basic problem lies at the heart of a broken system in desperate need of reform.

“With households facing a cost-of-living squeeze, it is vital that the benefits system gives the protection that tenants deserve. 

“That is why the Chancellor needs to end the housing benefit freeze as a matter of urgency. Without this many tenants and landlords face an uncertain future about how to keep tenancies going.”

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