21/03/2025
Propertymark is advising agents to prepare for potential changes in rent collection processes and consider implementing “supportive measures” to assist struggling tenants facing financial difficulties.
This is as a result of a shake up in benefits next month.
From April the Universal Credit Fair Repayment Rate will drop from 25% to 15% next month, reducing the amount available to service an individual’s monthly debts, including housing payments.
Furthermore, the Department for Work and Pensions is set to overhaul the system of the automatic deduction of arrears and ongoing rent payments directly from tenants’ Universal Credit or other benefits, following a court ruling which deemed the practice unlawful.
In January this year, a legal case challenged this system when a tenant discovered that £500 had been deducted from his benefits without consultation, despite an ongoing dispute with his landlord over property repairs.