Landlords prefer Guaranteed Rent vs Risky Universal Credit (UC) ?
The Government’s new Universal Credit payments could have a disastrous impact on the private rented sector, with more and more landlords refusing to let to tenants on benefits. The warning comes from the Residential Landlords Association.
It says landlords are frustrated with the new system, which sees benefits paid directly to claimants, who are then responsible for paying their own bills, including rent.
The RLA says its members have criticised the way the Department for Work and Pensions has handled their enquiries and say that the process for requesting direct payments from the Government is too long.
One landlord who responded to the RLA survey said: “The Universal Credit system is mysterious, unresponsive and devoid of communication.
“I have made three applications. I received one payment but no statement, and I have no idea what the payment was for. I have not received any communication in response to the other applications.
“There are very long delays which are unacceptable as arrears mount and I still have to pay the mortgage with no rent income. This is a disaster and will result in increased homelessness.”
The transfer from Local Housing Allowance to Universal Credit has also been slammed, with complaints about missing and delayed payments leaving tenants in arrears.
The RLA says “the problems are so extreme many landlords say they will no longer rent to any benefit claimants”.
One landlord who responded to the consultation said: “I will stop renting to people on Universal Credit as I won’t get rent to cover mortgage payments.
“The system whereby tenants get payment rather than the landlord is shambolic, universally disliked, makes tenants vulnerable to addictions and homelessness and prevents landlords from renting to people in receipt.”
Central Housing Group’s Guaranteed Rent Scheme provides landlords with a guaranteed monthly rental income for up to 5 years. Our ‘Guaranteed Rent’ Scheme protects landlords by paying them an agreed monthly Guaranteed Rent for the duration of the term of their contract regardless of whether their property is occupied or not. In contrast to the issues highlighted in this article, our landlords do not incur any rent loss at all during void periods, when they let their properties on our Guaranteed Rent Scheme.
Landlords – please carefully consider the risks you run by choosing to let your property privately when, instead, you can let your property on our ‘Guaranteed Rent’ Scheme and protect yourself from any rental loss exposure.
As a fully contracted supplier to many of our Council clients, our accounts are audited annually and are subject to regular and close scrutiny by our Council clients – landlords can therefore have complete confidence in our ability to ensure they will receive their agreed rent on a Guaranteed basis for the duration of the term of their contract with us.
If you are interested in finding our more about our ‘Guaranteed Rent’ Scheme, currently operating in north, east & west London, please call us today on 020 8447 1222.