1st
May 2016
Landlords are up in arms over the implementation of the Universal Credit scheme and many will not be accepting those on benefits.
Universal Credit now puts the onus of responsibility upon the recipients to pay their own rent as those on benefits will now receive one monthly payment into their accounts, rather than receiving weekly payments.
Many landlords are sick to their back teeth of the new scheme as it results in late rent payments as councils are no longer operating the Local Housing Allowance direct payments.
From recent research carried out amongst landlords, there is a sharp increase of those who will not accept any new tenants that are on housing benefits.
One landlord responded to the survey by saying: “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.”
Richard Merrick of PIMS, says: “It is no wonder that landlords are turning against Universal Credit tenants. We know of many instances that the first payment of Universal Credit is mostly delayed and can take up to six weeks and longer,
“Surely the government has enough on its hands with the one state owned bank, rather asking landlords to become bankers in subbing their inefficiencies ? ”
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