Landlords have expressed their deep concern over the impact of Universal Credit on the private rented sector.
Most (70%) of those who let to tenants currently in receipt of Local Housing Allowance said they are worried about the welfare changes.
Tenants are continuing to vote with their feet in the most expensive parts of London, by moving out to cheaper areas.
Agents are reporting the ongoing exodus, amid an over-supply of properties, with landlords having to freeze or cut rents.
A mechanism to recover rent arrears is to be incorporated into the new Universal Credit system, by docking the benefit.
Landlords who are owed rent by tenants receiving benefit will be able to request direct payment once a certain level of rent arrears – as yet undecided – is reached.
Minister for Welfare Reform Lord Freud says the Universal Credit demonstration projects have helped to shape new thinking around direct payments to tenants.
The demonstration projects were set up to learn how we could best support landlords and tenants with the introduction of direct payment. That learning is regularly shared and I’m sure all members of the social housing community have views on what it is teaching us. Because the roll out of Universal Credit is progressive we have time to get this right.
The majority of the British public believe the government should be tackling the root causes of the country’s high housing benefit bill.
A survey by the Fabian Society asked people if they agreed with the statement: "The size of the housing benefit bill has risen because there are more people claiming due to unemployment, low wages and rents rising quickly. Instead of planning further cuts, the government should be focusing on solving these underlying problems. The government should do this even if it took a long time and meant tax rises or spending cuts elsewhere."
The Universal Credit direct payment demonstration projects will be extended for a further six months, Minister for Welfare Reform Lord Freud recently announced, as new findings from the projects are published.
The Department for Work and Pensions says the extension will help to further develop the support needed for social housing tenants moving onto Universal Credit. The projects will now run until the end of the year.
Six in ten landlords and agents are concerned about receiving rent if they accept housing benefit tenants.
A new survey of 500 landlords and agents by website Dssmove found that rent apart, most landlords and agents (75%) were happy to let to Local Housing Allowance tenants.
Newham Council has received license applications from 30,000 private landlords as part of its pioneering scheme to improve housing conditions in the borough.
Since January 1 this year, the council has carried out 750 enforcement visits, issued 1,200 warning letters, and handed out 50 cautions. Thirty prosecutions, at various stages of the legal process, have been pursued since the scheme started.
A property management company described by the local authority as a landlord has been fined following a fire in an outbuilding that left two people in hospital.
Ace Management, of Kings Avenue, Winchmore Hill, London, was ordered to pay £12,000 after admitting renting out a house in Melfort Road, Thornton Heath, without being licensed to do so.
Almost a quarter of buy-to-let landlords are planning to purchase at least one further property over the next 12 months.
According to a study by agents Allsop and market research firm BDRC Continental, 23% of landlords plan to grow their portfolios over the next year, and 61% are confident about the future for their businesses.