An increasing number of landlords are refusing to rent to tenants under 35 due to the higher risk of rent arrears and breach of contracts, alarming new research has found.
While most landlords are willing to rent to under-35s, nearly a third are changing their letting strategy to ensure that they have greater payment security.
The study by Sheffield Hallam University found that 79% of landlords said they had reduced the number of under-35s they let to because of the higher risk of rent arrears.
Of the 1,996 landlords questioned in the study, two-thirds said they were not willing to let to under-35s on housing benefit or Universal Credit and 44% were not willing to let to students.
Landlords who continued to let to those claiming benefits had put in place additional safeguards, such as the use of guarantors or direct payment.
When asked what would encourage them to increase lettings to under-35s, landlords called for a reversal of recent tax increases tax relief for longer tenancies and direct payment to the landlord for tenants on welfare.
Alan Ward, chair of the Residential Landlords Association, which commissioned the report, 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.
“The report notes that landlords are not necessarily looking for higher rents or increased yields from their properties. Instead, the emphasis is on 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. Without this many under-35s are likely to struggle to access any accommodation.”
