Stark rise in rent arrears due to the 'bedroom tax'

Stark rise in rent arrears due to the 'bedroom tax'

A labour MP, Jessica Morden, has compiled figures that show stark rise in rent arrears in associations in Newport and Monmouth due to the bedroom tax.


As a private landlord, there is no need to be alerted as this does not affect you. However, it is worth knowing. The rent arrears have risen by £ 164,000 – the figure takes into account those tenants whose housing benefit has been cut due to the so called ‘bedroom tax’ and who kept up with rental payments before the changes.


The number of social tenants affected by the change in Newport and Monmouthsire are in the region of 3,000.


Ms Morden said: “So far, housing associations are taking the financial hit, but that cannot continue forever. It seems this terrible tax will not only mean homelessness will go up, but it will also weaken the financial ability of housing associations to reinvest in upgrading their houses and buying new homes. Ministers have argued that those affected would be able to find the extra money, these figures starkly show this is not the case.”


As mentioned at the beginning, private landlords do not need to alarmed. I have come across many landlords who thought that so called ‘bedroom tax’ will mean their tenants will receive less money. This is not the case unless you are registered social landlord – do remember that simply renting the house to tenants who claim benefits does not make you a social landlord.