It is very welcome news that the Chancellor has confirmed that the government will uprate benefits by inflation with an increase of 10.1%, giving families on Universal Credit a boost of £600 per year. W would also like to have seen some form of tax relief for landlords who let to tenants in receipt of benefits to encourage them to remain in the sector.
“It is very welcome news that the Chancellor has confirmed that the government will uprate benefits by inflation with an increase of 10.1%, giving families on Universal Credit a boost of £600 per year. W would also like to have seen some form of tax relief for landlords who let to tenants in receipt of benefits to encourage them to remain in the sector.
We have seen a significant increase in landlord clients contacting us who are concerned about their tenants’ ability to pay rent. Some tenants who are in receipt of Universal Credit are cancelling their Alternative Payment Arrangements (APA) due to the cost of living crisis, forcing landlords to consider eviction as their only option.
If a tenant is having difficulty meeting their rent payments, landlords can put a request in to the Department for Work and Pension (DWP) to set up an APA, meaning the housing element of the tenant’s Universal Credit payment is paid directly to the landlord. Many tenants find this an easier way to help them budget. Typically, APAs have a significant impact on limiting arrears and also help to sustain the tenancy as landlords have the reassurance that they will receive rent payments.
We’re working with more and more landlords and tenants to ensure they are claiming the benefits they are eligible for and looking at how they can budget to ensure they meet their rent payments and maintain their tenancy.
Over the last few months this has become increasingly challenging. There is no doubt that rising inflation is increasing risk and severity of poverty. However, the chronic shortage of social housing means thousands of tenants are reliant on private landlords, but this is only feasible for landlords whose tenants are able to meet payments. Landlords are facing their own financial challenges due to increased taxes and mortgage hikes, and we are seeing a reduction of landlords who want to operate in this sector.
The government has been too quick to drive private landlords away without considering the impact on the very people it claims to be supporting – tenants. The fact is, until we can build more, our country needs private landlords, the vast majority of which provide good quality housing in desirable locations.”