A survey of housing associations has found that, on average, they expect their rent arrears to increase by 51% as a direct result of the government’s impending welfare reforms.

The survey of 232 housing associations, carried out by Ipsos Mori for the National Housing Federation, has also revealed that if this is extrapolated across the sector it will mean an increase of £245 million.

The abolishment of direct payments of housing benefit to landlords is expected to have the biggest impact, with more than 80% of registered providers saying this will affect them significantly.

22% said that the changes will make it harder for them to meet their loan covenants, with 10% of those involved in the affordable homes programme saying that direct payment of housing benefit to tenants will make it harder for them to deliver their house building commitments.

The survey also reveals:

• 60% of HA’s are concerned about the under-occupation penalties for working-age families on housing benefits
  (AKA the ‘bedroom tax’, rising to 80% for landlords operating in Yorkshire & Humerside, the East Midlands and East of England)
• 57% of HA’s are concerned that their tenants know little about the upcoming welfare changes,
• 95% of landlords are looking at the risks of welfare reform,
• Landlords are planning to spend an average of £50,000 during 2013 preparing for the impact of the welfare changes.

NHF chief executive David Orr said: ‘Housing associations are doing their best in tough circumstances to cushion the blow for their residents. But there is still a lot of uncertainty, including in government, as to the full impact of its reforms. We need more time to understand and prepare for the impact of these massive changes to the welfare system.

‘In these difficult times, the best way to help residents manage their finances is to allow them to continue having their support for housing costs paid direct to their landlord. Otherwise we are in danger of seeing rises in homelessness and families really struggling to make ends meet.’

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This is why landlordreferencing.co.uk continually stress the importance of all landlords and letting agents joining our unique system, in order to Network Reference with their fellow landlords/agents to prevent excessive rent arrears and/or property damages – but more importantly to protect their existing tenants from bad neighbours.

As a landlord, letting agent OR tenant if you agree that tenants should have the right to decide if their rents are paid directly to their landlord then please SIGN THIS PETITION and share it with your colleagues, peers and anyone else that might be interested.

On the other hand, if you support the abolishment of direct payments of rent to landlords LRS would love you to share your views with the rest of the community as to why this is.

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