Landlords See Young People As High Risk For Rent Arrears

A study by Sheffield Hallam University, commissioned by the Residential Landlords Association (RLA), involved nearly 2,000 private landlords.

Researchers found that two-thirds of landlords are not willing to let to under-35s on Housing Benefit or Universal Credit and 44% are not willing to let to students. Amongst landlords whose lettings practice had been affected by the extension of the Shared Accommodation Rate to all under 35s in 2012, 68% had reduced or stopped letting to under-35s on benefits.

According to 24 Housing, four-fifths of landlords who continued to let to Housing Benefit or Universal Credit claimants had put in place additional safeguards, the most common being the use of guarantors or asking for direct payment to the landlord. When asked what would encourage them to increase lettings to under-35s, landlords called for a reversal of recent tax increases, providing tax relief for longer tenancies and the better administration, and direct payment to the landlord, of housing costs under welfare payments. The most popular initiative that landlords wanted to see was the introduction of bond or rent deposit schemes.

Alan Ward, chair of the RLA, 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.”