Welfare Reform and Universal Credit: Evaluating the impact on the Private Rented Sector
Project details
Author(s): Dr Tom Simcock and Dr Axel Kaehne
Author institution(s): Edge Hill University
Date of Publication:
Publisher: Edge Hill University / Residential Landlords Association
Funder: Residential Landlords Association
Research Aims, Objectives and Methodology
The private rented sector has become increasingly important in providing a home to renters. Private landlords now play a prominent role in providing a home to many low-income households who claim housing benefit. At the same time there have been significant welfare reforms introduced by successive governments.
To further develop the understanding of the issues surrounding welfare reform and the private rented sector, the Residential Landlords Association commissioned Edge Hill University to conduct an independent study as part of their ‘State of the PRS’ quarterly surveys. The main aims and objectives of this study were to examine the effect of welfare reforms on private landlords, and, to monitor and analyse key trends across the sector in line with previous quarterly surveys. This project was undertaken between March 2019 and May 2019 and included an online survey to which 2,229 private landlords responded.
Key Findings
Universal Credit
- Over half of landlords (54%) with Universal Credit claiming tenants had experienced their Universal Credit tenants going into rent arrears in the past 12 months. In the most recent case of rent arrears these landlords reported they were owed on average £2,187. The majority of these landlords (82%) reported that the rent arrears began after either a new claim for or migration onto Universal Credit.
- The majority of landlords (57%) reported that they would not be willing to rent to benefit claiming tenants where they know there is a short-fall between the amount covered by benefits and the rent charged.
- The study found that affordability for low-income private renters was a significant barrier to accessing housing in the private rented sector. We found that there are gaps between the rent and what is covered by LHA rates. A clear majority of landlords (88%) reported a gap, with 65% of landlords reporting this gap was over £50 a month.
- The majority of landlords (57%) reported that they would not be willing to rent to benefit claiming tenants where they know there is a short-fall between the amount covered by benefits and the rent charged.