A government-designed system that is creating homelessness and forcing people to use food banks

Research published by Sheffield Hallam University on behalf of the Residential Landlord Association shows that landlords are, increasingly, refusing to let their properties to those under 35. There are a number of reasons for this, not least that the landlord might not get paid on time or at all.

32% of landlords (of the 1,996 questioned) have said that that they have actively reduced lettings to those under 35.

The situation is more acute for those under 35 in receipt of housing benefit or universal credit. Two-thirds of landlords say they are unwilling to let to this group because of a higher risk of rent arrears as payments are delayed through administrative delays and payments are made to the tenant rather than direct to the landlord.

We used to have a system that almost used to work but then some idiot decided that a higher priority would be to prepare claimants for the reality of work by mirroring the conditions of those in work. He (it was a ‘he’) then introduced a system that has been so poor in its design and execution that people are becoming homeless and others reliant on food banks to survive. It takes some sort of genius to drive people into destitution because of his own arrogant, self-belief.

I’m not going to name this person. Choose any name. It could be Iain, perhaps Duncan, or even Mr Smith. Whatever works for you.

Alan Ward, chair of the Residents Landlord Association, said: “We have already held constructive talks with the Government about this and we will keep the situation under review, but there is a need for policymakers to engage further with landlords to consider what more action can be taken to address this decline. Without this many under-35s are likely to struggle to access any accommodation” (my emphasis)

So where will those under 35 live? I challenge any of my Conservative friends, and I have quite a few, to tell me.

And while they are about it, will they say, hand on heart, that they are proud of what the welfare reform agenda is delivering, that it is a strong and stable system…..

And please don’t come up with the twaddle about rescuing the economy crashed by the former government or that there is no magic money tree. There is money there. There wasn’t a problem when the government needed £1 billion for its friends in the DUP.

One simple measure the government could do, and it will cost next to nothing, is to continue making payments direct to landlords. That might, just might, improve confidence.

Housing in Hastings: Universal credit and the 6 week wait for the first payment

(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:

Brighton

Eastbourne

Hastings