Know Your Rights as a Universal Credit Tenant

Renting is not easy, particularly if you are living on Universal Credit to help pay for your home. Most tenants find it hard to cope with landlords, letting agents, and housing law. Knowing your rights as a tenant in receipt of Universal Credit helps you to make sure that you are being treated right and you are able to get decent accommodation.

Here, we will explain the legal protections for you, typical issues DSS tenants experience, and pragmatic tips on how to cope with renting when in receipt of benefits.

Can Landlords Refuse Tenants on Universal Credit?

One of the largest worries for tenants under Universal Credit is whether or not landlords can legally refuse to rent to them. Although private landlords do have a right to pick and choose who they want to rent to, they cannot lawfully discriminate against someone because they are on benefits.

A few landlords and letting agents continue to market properties as “No DSS,” which means they exclude tenants on benefits. If you are refused a rental on the grounds of your benefits, you can challenge this refusal. You can:

  • Ask the landlord or letting agent in writing why your application was refused.
  • Collect evidence of any discriminatory conduct, including screenshots of “No DSS” adverts or emails rejecting you on the grounds of benefits.
  • Get advice from organisations such as Shelter or Citizens Advice on how to challenge the refusal.
  • Report the agency or landlord to the local council or housing ombudsman for discriminatory conduct.

Your Legal Rights as a Tenant on Universal Credit

  1.  Right to Rent

Every tenant in England is required to go through a Right to Rent check. This is for everyone, not just for those who get benefits. You will be asked for evidence of identity and lawful residence (such as a passport or residence permit) to demonstrate that you are lawfully allowed to rent an apartment.

But some landlords might attempt to use Right to Rent checks as a reason to reject tenants on Universal Credit. If you think this is occurring, you should contest the decision and ask for an explanation of why you were rejected.

2. Protection Against Discrimination

If a landlord or agent declines your application just because you are on Universal Credit, this may amount to discrimination. You can:

  • Report the agent or landlord to the local council with a view to legal action.
  • Take advice from organisations such as Shelter or Citizens Advice to advise you of your rights.
  • Take action legally if needed by reporting to the Property Ombudsman or even making a discrimination claim in court.

Utilise other platforms that specialise in DSS-friendly landlords, like Find My Move.

3. Right to a Safe and Habitable Home

Landlords are responsible for ensuring their properties are safe and habitable. This involves:

  • Supplying adequate heating, plumbing, and electricity.
  • Keeping the home damp-free, mould-free, and structurally safe.
  • Completing necessary repairs on time.
  • Performing gas and electrical safety inspections as a statutory requirement.

If your landlord fails to perform these duties, you can ask for assistance from your local council’s environmental health department. They are able to issue enforcement notices on errant landlords, and in extreme cases, they can bring a case in court on your behalf.

4. Right to a Tenancy Agreement

Each tenant is entitled to a written tenancy agreement, which contains:

  • Rent level and payment conditions.
  • Responsibilities of the landlord to maintain and repair.
  • Your tenancy obligations.
  • Length of the tenancy and notice periods to be given for eviction.

If there is no written agreement, ask to see one to ensure your rights. An oral agreement is not necessarily unenforceable, but it is much more difficult to enforce in the event of a dispute.

How Universal Credit Pays Your Rent

If you are a tenant on Universal Credit, you might be entitled to receive money from the Housing Component of your Universal Credit to cover your rent. This component of Universal Credit exists to assist with paying the rent for tenants, but the specific amount you might get can change depending on several important factors:

1. Local Housing Allowance (LHA) Rate

Local Housing Allowance (LHA) calculates the upper limit of the housing benefit you can get if you are a private landlord’s tenant. Government sets LHA rates, which differ based on:

  • Your location: LHA rates are dependent on the renting market in your location, i.e., someone who lives in London or Manchester will get more allowance than the person who stays in a smaller town.
  • The number of bedrooms you’re allowed: This is determined by your household size, with guidelines specifying how many bedrooms you’re entitled to (e.g., an individual under 35 may only be allowed the shared accommodation rate).
  • The overall benefit cap: If your total benefits are more than the government’s benefit cap, this can restrict the amount of housing help you’re given.

You can view your LHA rate on the government website or contact your council for further information.

2. Your Household Size and Age

How much Universal Credit you get to cover rent is determined by your individual situation, such as:

  • Single people under 35: If you are under 35 and don’t have children, you can only be entitled to the Shared Accommodation Rate, which means your housing benefit is worked out on the basis of renting a room in a shared house and not a whole property.
  • Families or individuals aged 35 and above: You can get a higher LHA rate, depending on how many dependents you have and the size of property you require.
  • Couples and families: If you are living with a partner or children, you can get help with a larger property, in accordance with LHA regulations.

3. Type of Tenancy: Private Landlord or Council or Housing Association

How Universal Credit pays for rent also varies depending on whether you rent from a council or housing association or privately:

  • Private rentals: LHA rates determine the maximum amount you can get. If your rent is more than your LHA rate, you might have to pay the difference yourself or claim extra help like Discretionary Housing Payments (DHPs) from your local council.
  • Council and housing association tenants: If you are a renter from a local authority or housing association, your Housing Element is typically set on your rent rather than the LHA rate. Spare bedroom deductions (typically referred to as the “bedroom tax”) can apply though if you have spare bedrooms.
  • Supported or short-term accommodation: If you are accommodated in a hostel, refuge, or supported housing, your rent assistance might be paid for by Housing Benefit and not Universal Credit, depending on your situation.

Shortfalls in Rent

If your Universal Credit is not enough to pay your full rent, you have a number of options:

  • Make an application for Discretionary Housing Payments (DHPs) from your council to assist in bridging rent shortfalls.
  • Think about shared accommodation if you can only get the Shared Accommodation Rate.
  • Talk to your landlord about reducing your rent or making flexible payments.
  • Plan in advance and not get into arrears using budgeting tools by arranging for your rent to be paid in advance.

By knowing how Universal Credit pays your rent and how it affects your payments, you can be proactive in securing decent and affordable housing and managing your finances well.

How to Pay Rent on Time

  • Arrange direct payments: Universal Credit can pay rent directly to your landlord in some situations, including if you have difficulty paying bills. You can ask for it through your Universal Credit online account or by having a conversation with your work coach.
  • Budget sensibly: As Universal Credit is paid monthly, you might have to budget ahead for rent so that you do not run short of money towards the end of the month. Budget in the order of rent first, followed by other costs.
  • Apply for Discretionary Housing Payments (DHPs): If your Universal Credit does not pay your full rent, your local council can give you additional financial assistance on an individual basis. This can be especially helpful if you are facing temporary financial difficulties.
  • Use budgeting software or help services: There are free money management advice and budgeting tools available from several charities. You may also approach your local council for extra help services.

Challenges Shared and How to Meet Them

1. Landlords Not Willing to Accept Universal Credit

Although blanket DSS prohibitions are illegal, some landlords do not want to let tenants on benefits out of old myths or mortgage limitations. To boost your prospects:

  • Supply references from past landlords to demonstrate you are a good tenant.
  • Offer a guarantor where possible, such as a member of your family who will pay the rent if you cannot.
  • Provide evidence of regular rent payments, including bank statements or past tenancy agreements.
  • Emphasize other sources of income, if any, to ensure landlords of your financial security.

2. Delays in Universal Credit Payments

Universal Credit is paid in arrears, so there might be a wait before you can receive your first payment. To prevent missing rent payments:

  • Claim an advance payment if necessary, which can be used to cover initial rent payments.
  • Talk to your landlord if there are any anticipated delays and ask them to be flexible if you can.
  • Contact local charities, housing associations, or council services if you require urgent financial assistance.

3. Shortfalls Between Rent and Universal Credit Payments

If your Universal Credit is not sufficient to pay your rent, you can do the following:

  • Ask your local council for a Discretionary Housing Payment (DHP).
  • Look at shared housing to save money, particularly if you are under 35 and can only afford shared accommodation rates.
  • Bargain with your landlord for reduced rent if you can or seek a property that fits within your Local Housing Allowance (LHA) limits.

What to Do When You Are Threatened With Eviction

If you can’t pay your rent and risk eviction, act quickly:

  • Speak to your landlord: They might be willing to accept a payment plan or suspend rent rises.
  • Get advice: Charities such as Shelter, Citizens Advice, or your local authority can provide advice and legal assistance.
  • Check your legal rights: Landlords have to use the correct legal eviction procedure, including issuing proper notices and getting a court order if they need to.

Illegal evictions (making you leave without warning or simply locking you out) are illegal. Call the police or local council at once if this occurs.

Final Thoughts

You are entitled to rights and protection by law as a tenant on Universal Credit. Although renting on benefits is not without its problems, knowing about DSS tenant legal rights and housing law can make you face the situation with more confidence. Being knowledgeable, standing up for yourself, and utilizing support systems available can allow you to find secure housing and safeguard your rights as a tenant. For help locating a property that will accept DSS tenants, Find My Move can assist you in connecting with landlords willing to rent to benefit recipients.