A recent piece, by the NRLA discussing their research sheds light on a notable shift in the UK rental landscape. The study reveals that the number of landlords leasing to Universal Credit (UC) recipients has doubled in the six years. This data, extracted from the Quarterly In Focus report by the National Residential Landlords Association (NRLA) provides valuable insights into the private rental sector. As a company specialising in retrofit heating and insulation services operating within the UK ECO4 initiative understanding these developments can help Euro Energy Group better cater to both landlords and tenants ensuring that the ECO4 program fulfills its intended purpose of aiding those and in dire need of assistance.
Taking a closer look at the statistics.
The volume of UC beneficiaries has seen a surge since the onset of the Covid 19 pandemic with data, from the English Housing Survey indicating that 6.4 million individuals have accessed UC since January 2024. This sharp rise has inevitably impacted the arena. In 2018 21% of NRLA members were renting to UC claimants. By 2024 this percentage had climbed to 43%.
Enhanced payment efficiency amid ongoing challenges.
Interestingly, The study shows that even though more people are receiving Universal Credit (UC) benefits the number of tenants falling behind on payments has actually decreased. Back, in 2018 61% of landlords reported rent arrears with UC tenants. By 2024 this percentage had gone down to 39%. This indicates an improvement in how UC’s managed. Despite this progress landlords still face difficulties especially when dealing with the Department for Work and Pensions (DWP) regarding issues like missing payments or receiving much.
A significant discovery is that 10% of landlords whose UC tenants were in arrears had to wait over six months for a resolution. This shows that while there have been some changes there are still obstacles to overcome, especially concerning the initial claiming process and overall management of claims.
NRLAās request for change.
In light of these difficulties the NRLA is actively advocating for changes to be made to the UC system to simplify things for both landlords and tenants. Their main requests include;
Eliminating the five week waiting period for UC claims; Transforming the advance payment from a loan into a grant so that tenants don’t start off in debt.
Having rent payments from UC go directly to landlords; This would ensure that rent is paid on time and alleviate pressure, on tenants.
Landlords may seek permission to discuss a tenants claim with the Department, for Work and Pensions aiming to enhance communication and speed up the resolution of payment issues.
The importance of retrofit heating and insulation.
In the landscape Euro Energy Group plays a role in the ECO4 scheme. By delivering energy heating and insulation solutions we can significantly cut down on heating and energy expenses for tenants thereby enhancing their living conditions. This initiative also enables Universal Credit tenants to have income to fulfill their financial obligations, such as rent top ups or any arrears they may owe. This not aids tenants in managing their living expenses. Also assists landlords in maintaining their properties in better shape potentially reducing arrears associated with high utility bills.
Linking Universal Credit with the ECO4 scheme.
There exists a correlation between Universal Credit and the ECO4 scheme since individuals receiving UC are typically eligible for the ECO4 scheme as it is one of the qualifying benefits specified by Ofgem. The specific work that can be undertaken varies based on the propertys needs, with proposed solutions outlined post a survey. Many retrofit companies offer surveys, including Euro Energy Group.
Why opt for Euro Energy Group?
Choosing Euro Energy Group for your propertys retrofit works offers an advantage due, to their approach. Unlike companies that focus on individual solutions such as insulation or heating improvements only Euro Energy Group takes a holistic view. They assess survey results thoroughly. Aim to implement measures to achieve the greatest impact ultimately maximising savings.
Why prioritise a whole of house approach?
Embracing a whole house approach is crucial for optimising savings and efficiencies. Simply insulating a property without addressing heating systems or controls may lead to temperature regulation issues causing unnecessary heat loss by opening windows. Similarly improving heating efficiency without insulation could result in heat wastage through walls, windows and the roof.
Looking ahead; challenges and resolutions.
The increase, in landlords renting to Universal Credit tenants mirrors broader shifts.
As a business we have the chance to assist both property owners and renters during these changes. By providing effective retrofit options we can help in establishing a secure and eco friendly rental market. Whether you’re a renter aiming to lower your expenses or a property owner wanting to enhance your real estate holdings and provide support, for your tenants simply reach out to Euro Energy Group and our team will explore ways to assist you.
