The proportion of landlords letting to tenants on Universal Credit has risen once again, according to new NRLA research, with the figure nearly doubling in a five-year period.
Universal Credit and Local Housing Allowance were among the issues addressed in the NRLA’s Quarter One survey.
The NRLA has campaigned to make the Universal Credit system easier to navigate and to speed up claims and avoid rent arrears and although there appears to be no single reason for the increase, factors are likely to include the Covid-19 pandemic which has resulted in a more fluid employment market.
In previous years (both 2018 and 2020) more than 60% of landlords reported Universal Credit claimants went into arrears. However since 2020 this proportion has fallen.
This year 39% of landlords stated Universal Credit claiming tenants went into arrears – down from 45% when they were asked a year ago.
However almost half (45%) of landlords who do have tenants going into arrears report those arrears have accrued after a tenant claim for Universal Credit has started – an indication of a slow payment system.
More than 60% of landlords report that it takes over a month for applications for Local Housing Allowance claims to be completed, almost half of these taking over two months, and just 7% of landlords described the LHA claim process as “easy”.
The NRLA regularly discusses with and lobbies DWP on behalf of both landlords and tenants on Universal Credit and the application experience. Our quarterly surveys provide a clear evidence base to use as part of that lobbying activity.