According to the Residential Landlords Association (RLA), landlords are dealing with rising rent arrears, caused by their tenants’ Housing Benefit being unfairly suspended or cancelled. The problem is being blamed on the Department of Work and Pensions (DWP). The RLA says the problem is getting worse, even though the DWP and local authorities are aware there is a serious issue.
Housing Benefit Cuts
The problem arises when benefits claimants are told they aren’t making enough effort to find work. The tenant’s benefits are cut as a result, but what many tenants don’t realise is that their Housing Benefit is also affected.
“Landlords, already reeling from some of the worst effects of welfare reform, are also experiencing mounting rent arrears, caused by this same issue, which needs to be addressed by both councils and DWP urgently”, says the RLA.
Housing Charities Concerned
Housing charities are also concerned about the issue and have raised concerns with the DWP.
“People are not being advised that their housing benefit will be affected and that they may need to re-apply for it,” says homelessness charity, Crisis.
“Often they only realise there’s a problem when they are in arrears or facing eviction. There needs to be clear communication between the different [council] benefit departments to prevent people’s housing benefit being affected by sanctions [applied elsewhere].”
Landlords Struggling
Many landlords are struggling to get anywhere when they submit Alternative Payment Arrangement (APA) applications at the two-month rent arrears tipping point. Landlords should be able to submit APA applications online, but the system isn’t working and therefore they have to post them instead. The whole system is a shambles, which is leading to huge rent arrears and the threat of eviction for tenants.
