Is Universal Credit forcing rent reductions on landlords?

Unfortunately UC only cover a certain amount of a tennants rent if it is a private landlord but they generally do cover the full rent if it’s housing association or council

UC will pay all of a private tenants rent, if it is at or under the housing benefit amount for that property type in that area.

The likelihood as to why they cover all of housing association or council rent is because those rents are generally lower than private.

Reply to the comment left by Lynette Horan at 22/10/2024 – 07:26And if it’s a flat they cover service charges too! Just another example of the way private landlords are victimised by government rules. As you say, you are only the evil landlord who has put your own savings into housing people more properly housed by the local authority. I sympathise, having been in this same trap for many years. The truth is these tenants are being subsidised by us/you and our/your other tenants. It’s up to you whether you are prepared and can afford to make the sacrifice or if you give the tenants notice. We all know what the Build-to-Rent outfits will do. However, I would say you have been lucky to be in an area where LHA rates have hitherto approximated to market rents.

Reply to the comment left by John Parkinson at 21/10/2024 – 15:21

Sadly, John is right. The only sensible thing to do is serve a section 21 and evict the tenants. Actually they should be grateful as with their various disabilities they should be in priority need, & are not intentionally homeless (as you served notice) and should get a subsidised social housing flat to meet their needs longer term.

I had to do same for my tenants. As they were also of pension age they got rehoused in a nearby retirement complex within weeks. No court proceedings required.

Better get a move on though as the sun sets on this option pretty soon.

Don’t take UC tenants, plenty of other tenants to choose from

Reply to the comment left by Tim Rogers at 21/10/2024 – 11:00
Hi Tim

The reason for the shortfall in “housing costs” between Housing Benefits and LHA appears to have been caused by your tenant receiving housing benefit under the “old scheme” rules i.e. he was a tenant prior to 2008 when LHA was introduced so was protected under that scheme.

I’m assuming from what you’ve said, the tenant is under 66 and was forced by DWP to migrate to Universal Credit. If that is the case, DWP should have paid something called “Transitional Payments” to cover the shortfall.

If he/she has, it will appear on his UC breakdown as “transitional payment” so worthwhile checking again with tenant and/or CAB.