Investigating the effect of Welfare Reform on Private Renting

The private rented sector (PRS) over the past twenty years has changed significantly, doubling between 2001/02 and 2011/12 and now provides a home for 4.7 million households (MHCLG, 2018a). Tenants are becoming more diverse, with an increasing number of families, ageing renters, and the most vulnerable calling the sector home. Private landlords are now playing a vital role in providing housing to those on low-incomes and the homeless. Recently, there have been many policy changes that affect the most vulnerable in society and their ability to access a safe and secure home in the PRS. These include the roll-out of Universal Credit (UC), the freeze to Local Housing Allowance (LHA) rates, the two-child limit under tax credits, and the extension of the Shared Accommodation Rate (SAR) to all single people under the age of 35. The principal aim of the present study was to examine the effect of welfare reforms on the private rented sector, including but not exclusively the impact of universal credit on landlords and the broader sector. A further goal of this report is to continue the monitoring of key trends in the sector. The research findings are based on the responses of 2,234 landlords across the UK.