Universal Credit could finish off my business, warns private landlord

One of the UK's largest private landlords says the introduction of Universal Credit could put his business at risk.

Kevin Green, 50, fears that tenants will fall behind on their rent and that he may have to stop letting to people on welfare.

Most of the 762 properties owned by Green are in or near Llanelli. Around 60% of his tenants receive benefits.

The heavily-criticised roll-out of Universal Credit has just begun and is due to finish in October 2017.

Under the new system, six working-age State benefits, including Local Housing Allowance, will be merged into one monthly sum paid into the claimant's bank account.

In a trial of the system, in Torfaen, among social housing tenants, rent arrears rose from around £20,000 to almost £140,000 in seven months.

Private sector tenants already have their LHA paid to them, rather than to the landlord, which has anecdotally resulted in landlords pulling out of the sector. Green says that once all the benefits are merged, tenants inexperienced at budgeting will struggle even harder to keep up with their rents.

Green told the BBC: What we're finding is if rent payment is put in the tenants' hands they are not being taught in school or further education to run a home and they just can't budget.

And it's going to lead to huge arrears. It could lead to us going bust at the end of the day and not providing homes for less fortunate people as well.

https://www.bbc.co.uk/news/uk-wales-politics-24860574