Rental disaster has been predicted in the private sector.Universal Credit has replaced Local Housing Allowance. This has resulted in criticism from landlords.
This system, sees benefits payed directly to the claimants instead of the landlords, causing worry that landlords will stop renting to tenants on benefits entirely. This is due to landlords fear that tenants under the Universal Credit scheme, will fail to pay their rent, or the full amount of the rent, to the landlords, if they are left top handle their own finances.This could therefore cause potential disaster in the private rental sector.
The transition from Local Housing Allowance, plus the service Universal Credit supplies, has been widely criticised over poor communication. One landlord, who spoke to the Residential Landlord Association, commonly referred to as the RLA, cited “I have made three applications. I received one payment, but no statement and I have no idea what the payment was for.”
Numerous missing payments are also leaving tenants in arrears, contributing to landlord’s decisions to only let their rental properties to people who are not claiming benefits. This failure is of Universal Credits, not the tenants, who are being penalised for the missing payments due to no fault of their own.