(This is the first of five daily items I will be posting this week. My thanks to my colleague Sue Hennell who wrote a briefing paper on which I have drawn for these posts).
Hastings is one of the areas that is now in the ‘full service’ roll out of Universal Credit. BHT’s Hastings Advice Centre has found it is dealing with tenants in rent arrears due to the waiting time for payments to commence. This can mean that the tenant accrues rent arrears and it can increase existing arrears. For some clients they have had to wait longer than 6 weeks for their first payment.
While social landlords on the whole are willing to wait for their rent and will arrange a repayment plan for any rent arrears due, many private landlords are not so willing to wait and will serve notice.
This is not just a problem in Hastings, but one that is replicated across the country. The Guardian in January of this year reported:
- Eight out of 10 social housing tenants moved on to Universal Credit are falling into rent arrears or increasing the level of pre-existing arrears.
- Families unable to manage the regulation 42-day wait for a first payment are regularly referred to food banks by housing associations or local MPs.
- Some claimants are waiting as long as 60 days for an initial payment because of processing delays on top of the formal wait.
- Uncertainty about the system has contributed to a dramatic decline in the number of private landlords willing to take on benefit recipients, even if they are in work.
Private landlords said that without changes they would be reluctant to let to Universal Credit recipients because of the high risk of tenant arrears. Alan Ward, the chairman of the Residential Landlords Association, said: “Landlords are rapidly losing confidence in the system.”
Meanwhile, membership surveys by the National Landlords Association reveal that the number of private landlords willing to let properties to recipients of Universal Credit – or the local housing allowance that predates it – has fallen sharply from 46% in 2010 to 18%.
A question I ask from time to time, where are people going to live if social housing isn’t keeping pace with need (and it is certainly not), and private landlords are less willing to rent to claimants?
If you are facing eviction due to rent arrears, get advice early from one of BHT’s Advice Centres in Hastings, Eastbourne and Brighton, the CAB or another advice centre.
Here are details of the BHT Advice Centres: