Landlords are increasingly refusing to rent their properties to people under the age of 35, fearful that rents won’t get paid in time and contracts will be breached.
Research conducted by Sheffield Hallam University shows that 30 per cent of landlords have changed their letting strategy in the last three years. Of the 1,996 landlords questioned in the study, 32 per cent said that they had actively sought to decrease lettings to under-35s over the last three years, and only 6 per cent said that they had actively sought to increase lettings to that age group.
The study makes dire reading for under 35s battling low or stagnant wages while seeking privately-rented accommodation. Two-thirds of landlords are unwilling to let to young people in receipt of housing benefit or universal credit.
The research shows that 79 per cent of landlords said that they had decreased lettings to under-35s because of a higher risk of rent arrears. A total of 68 per cent cited higher risk of breach in tenancy conditions.
Four-fifths of landlords who said that they were still renting properties to young people said that they had put additional measures in place to receive rent, such as the use of guarantors and direct payments.
Alan Ward, chair of the Residents Landlord Association, which commissioned the study, said: “This research suggests that landlords are moving away from accommodating under-35s, especially those who are on benefit, out of concern that they will not get paid.”
He said the research did not suggest landlords are looking to increase rents from their properties, but that landlords are “reducing risk, particularly in relation to rent arrears and the administration of welfare payments”.
“We have already held constructive talks with the Government about this and we will keep the situation under review, but there is a need for policymakers to engage further with landlords to consider what more action can be taken to address this decline”, he added. “Without this many under-35s are likely to struggle to access any accommodation.”
