Buy to Let Landlords Oppose Government Plans For Universal Credit

30 November 2012 Categories: News

Buy to Let Landlords Oppose Government Plans For Universal Credit

A recent survey conducted by BDRC Continental has revealed that the vast majority of buy to let landlords disagree with Government plans to pay Universal Credit directly to qualifying tenants, even if they are known to be a debt risk. The survey of more than 1000 landlords also showed that over 60% were unwilling to lower rents in return for direct payment of housing benefit, as the government earlier suggested.

In light of the results, the Residential Landlords Association is calling for ministers to reassess the proposed housing benefit reforms before private rental landlords decide against letting properties to benefit claimants en masse.  Landlords will never be certain they will receive the housing benefit portion of the universal credit payment said Alan Ward, chairman of the RLA.

Mr Ward went on to say “These results clearly show deep concern on the part of landlords about the direction that the government’s universal credit policies are taking. The uncertainty being created by ministers’ failure so far to issue regulations concerning the circumstances under which payments would be made directly to landlords is causing uncertainty for landlords and concern about renting to those on benefits.

“We call on ministers to abide by the election commitments made by both parties in the coalition and trust tenants to make their choice over who should receive the housing element of universal credit.”