18th
Aug 2017
A university has been recently commissioned by a trade body to undertake a survey into the PRS and just under 2,000 private landlords took part.
The survey claims that 79% of the landlords view propsective tenants who are 35 or under pose a highly potential threat of getting behind in rent.
Nearly 66% of landlords are refusing to enter into new tenacy agreements with under-35s who are claiming Universal Credit or on Housing Benefit and 44% will not let their properties to students.
Following the extension of the Shared Accommodation Rate to all under 35s in 2012 those landlords that had been affected by this, only 32% had continued to let their properties to 35s and under claiming benefits. 80% of these landlords who did so had tightened up their safeguards against rental arrears, by receieving monthly payments direct from the DWP as well as the usual practise of guarantors.
The landlords were also asked how they could be 'persuaded' to rent to the under 35s, they said they would consider doing so if a claimant's rent was paid direct to themselves, the government introduces a system of tax relief for longer tenancies and a sharp U-turn on the recent tax changes.
The most important initiative was for rent or bond deposits schemes to be introduced.
A spokesperson for the trade body, said: “This research suggests that landlords are moving away from accommodating under-35s, especially those who are on benefit, out of concern that they will not get paid.
“The report notes that landlords are not necessarily looking for higher rents or increased yields from their properties. Instead, the emphasis is on reducing risk, particularly in relation to rent arrears and the administration of welfare payments.
“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.”
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