Universal Credit: Private Rented Housing

(asked on 8th October 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment she has made of the effect of the introduction of universal credit on the financial sustainability of private sector landlords.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 20th November 2018

There are many complex factors which contribute to and affect the financial sustainability of landlords in this sector. Research carried out by the National Federation of ALMOs shows over three quarters of their tenants come onto Universal Credit with pre-existing rent arrears.

Arrears are usually temporary and the majority of claimants do succeed in paying their rent, managing their monthly payments and clearing their arrears over time

We continually review and improve Universal Credit in response to feedback. In 2018, following Autumn Budget 2017, we have implemented a comprehensive and wide-ranging package of improvements worth £1.5 billion. These include making advances of up to 100% of the indicative award available (from the start of a claim) and increasing the repayment period to 12 months, removing the 7 waiting days, providing an additional payment of 2 weeks of Housing Benefit to support claimants when they transition to Universal Credit, and changing how claimants in temporary accommodation receive support for their housing costs.

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