The shortage of affordable UK properties is causing trouble for a large number of families and professionals in the United Kingdom, but the housing crisis looks like it will get a whole lot harder for young professionals as landlords look to cut back on the number of tenancies for people under the age of 25, according to new research.
Most landlords are normally more than happy to rent to younger tenants but this is set to change with a third of landlords changing letting strategy, to provide security of rental payment, according to the research commissioned by the Residential Landlords Association (RLA) and undertaken by Sheffield Hallam University.
The results of this research stated that landlords who rented UK properties to people under the age of 35 believe there is a higher risk of rent arrears, with two thirds saying they would not rent their property to those on housing benefit or universal credit, and 44% will not rent to students.
Many agreed they would only change their view if reforms were made on the recent tax changes, and if welfare payments were made directly to the landlord and not the tenant.
They would also like to see was the use of bond or rent deposit schemes.
‘This research suggests that landlords are moving away from accommodating under-35s, especially those who are on benefit, out of concern that they will not get paid. The report notes that landlords are not necessarily looking for higher rents or increased yields from their properties. Instead, the emphasis is on reducing risk, particularly in relation to rent arrears and the administration of welfare payments,’ said Alan Ward of the RLA.
‘We have already held constructive talks with the Government about this and we will keep the situation under review, but there is a need for policymakers to engage further with landlords to consider what more action can be taken to address this decline. Without this many under 35s are likely to struggle to access any accommodation,’ he added.
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