Posts with tag: Universal Credit

Yesterday, landlords and letting agents became subject to conducting immigration checks on tenants under the Right to Rent scheme. But some will be experiencing even more changes to their lettings businesses, as Universal Credit continues its roll out across the UK.

More Areas Now Subject to Universal Credit

For more information on checking prospective tenants’ immigration status, read our advice here: /right-to-rent-rolls-out-nationally-today/

If you have tenants on housing benefit, it is vital that you are aware of changes to their financial circumstances. Under the new Universal Credit system, six benefits – including housing benefit – are rolled into one and paid in a monthly sum. Additionally, landlords will no longer receive the payment directly and will rely on tenants paying their rent.

This could result in rent arrears, as many claimants have suffered long-term debt as a result of the long waiting time before their first instalment of Universal Credit is paid.

If you have properties in any of the areas below, be aware that your tenants may be going through some financial difficulties and support them where you can.

From yesterday (1^st February), the following postcode areas are subject to Universal Credit:

• AL4 8, AL6 and AL9 6 of St Albans.
• BD3 7, BD3 8, BD4 0, BD4 8, BD10 0 and BD11 1 in Bradford.
• CM5, CM15 0, CM16, CM17, CM18, CM19, CM20, CM21, CM22 and CM23 in Chelmsford.
• E4 7 of Waltham Forest, east London.
• EN8 9, EN9, EN10 and EN11 in Enfield, north London.
• IG10 in Ilford, northeast London.
• LS1, LS2, LS3, LS4, LS5, LS6, LS7, LS8, LS9, LS10, LS11, LS12, LS13, LS14, LS15, LS16, LS17, LS18, LS19, LS20, LS21, LS22, LS23, LS24 8, LS24 9, LS25 3, LS25 5, LS26 0, LS27, LS28 and LS29 6 in Leeds.
• SG1, SG2, SG3, SG4, SG5 1, SG5 2, SG5 9, SG6, SG8 1, SG9, SG10, SG11, SG12, SG13 and SG14 of Stevenage.
• SS2 5, SS2 6, SS3 0, SS3 9, SS4, SS5, SS6, SS9 5 and SS11 in Southend-on-Sea.
• ST1, ST2, ST3, ST4, ST5 0, ST5 1, ST6, ST7 4, ST8 7, ST9, ST10, ST11, ST12 and ST13 in Stoke-on-Trent.
• WF3 2 and WF17 0 of Wakefield.

For the recent roll out areas, go here, here, here and here.

For all of the latest landlord advice and updates, check back to LandlordNews.co.uk regularly.

Universal Credit Rolls Out to More Areas

Universal Credit has been out of the news for a while, but we are committed to informing you of any potential changes to landlord/tenant finances.

The new benefits system sees housing benefit paid directly to the tenant, rather than the landlord. If you have properties within the following areas, be aware that from today, any benefit tenants you have will be receiving their payments via the new system.

The postcode areas subject to Universal Credit as of today are:

• BR8 in Bromley.
• CT1, CT2, CT3, CT4, CT5, CT6, CT7 0, CT13, CT14, CT15, CT16, CT17, CT18, CT19, CT20 and CT21 in Canterbury.
• DA1 1, DA1 2, DA1 9, DA2, DA3, DA4, DA9, DA10, DA11 8, DA11 9 and DA13 9 of Dartford.
• DE1, DE3, DE6 1, DE6 2, DE6 3, DE6 4, DE6 9, DE21, DE22, DE23, DE24, DE65, DE72 and DE73 in Derby.
• LE1, LE2, LE3, LE4, LE5, LE6, LE7, LE8 0, LE8 4, LE8 5, LE8 6, LE9 1, LE9 2, LE9 3, LE9 4, LE9 6, LE9 7, LE9 9, LE17 4, LE17 5, LE18, LE19 and LE87 in Leicester.
• PL1, PL2, PL3, PL4, PL5, PL6, PL7, PL8, PL9, PL10, PL11, PL12, PL16, PL18, PL19, PL29 and PL21 in Plymouth.
• TN14 7, TN14 6, TN15 7, TN25 5, TN25 6, TN25 7, TN26 2, TN28, TN29 and TN31 7 of Tonbridge.
• TQ1, TQ2, TQ3, TQ4, TQ5 and TQ12 4 in Torquay.

If you have tenants living in any of these places, ensure that you communicate with them about any financial changes to avoid them falling into rent arrears.

The areas that have already seen the roll out this year are here: /universal-credit-january-roll-out/ and here: /next-phase-of-universal-credit-roll-out-for-january-2/ 

Today sees the Universal Credit scheme roll out further across the UK.

Universal Credit January Roll Out

The new system replaces six benefits with a single monthly payment. Landlords have expressed concern, as the payment includes housing benefit, which will now be paid to the tenant, not the landlord.

When the pilot scheme was in effect, warnings arose that Universal Credit could lead to rent arrears. Landlords of housing benefit tenants were advised to plan for the changes.

As the scheme spreads across the country, landlords are reminded to keep up to date with changes to benefits and therefore their tenants’ finances.

From today, the following areas will be subject to Universal Credit payments:

• The BA1 8 and BA1 9 areas of Bath and North East Somerset.
• The following parts of Bristol: BS7 O, BS7 9, BS10 6, BS10 7, BS15, BS16 1, BS16 2, BS16 4, BS16 5, BS16 6, BS16 7, BS16 9, BS30, BS31 2, BS32, BS34, BS35, BS36 and BS37.
• These postcodes within Gloucester: GL9, GL12 8 and GL13.
• And SN14 7 and SN14 8 in Swindon.

If you are a landlord with rental properties in any of these postcode areas, be aware that your benefit tenants will be receiving Universal Credit from today. This means that, if you were receiving housing benefit directly before, you will not be paid housing benefit from today. Instead, your tenants will be paid the benefit and will then pay you rent.

It is important to communicate often with your tenants, so that they feel comfortable in discussing financial matters with you. If you do start to experience rent arrears as the scheme is enforced, it is a good idea to look into rent guarantee insurance, which will protect your lettings business.

Landlord News will continue providing the latest updates for landlords regarding Universal Credit and offering advice to those suffering with rent arrears – LandlordNews.co.uk