Debt Advice Could Save Landlords £50 Million
UK Landlords Urged To Offer Debt Advice Instead Of Eviction
The report by the Financial Inclusion Centre, commissioned by the Hyde Group, found that UK landlords could save more than £50 Million in debt-related eviction costs through early intervention.
Researchers found that, on average, landlords made a net return of £122 for every £100 spent on debt services.
The savings could pay for 2,000 new affordable homes, based on the Homes and Communities Agency’s funding regime.
The report – Does debt advice pay? Calls for financial and debt advice to become part of a landlord’s core service provision. At present landlords can seek to debt / rent recovery services, but the researchers are recommending earlier action to prevent the landlord havoing to go to such lengths.
The offering debt advice services is seen as crucial for landlords ahead of proposed changes to the benefit system in the government’s Welfare Reform Bill, which will see an increase in rent arrears and therefore tenant evictions.
Landlords preparing for the challenges that the new Universal Credit system are being encouraged to promote financial well being, provide earlier support and take early and decisive action when problems escalate.
UK tenants claiming benefits will need to manage their finances more independently than ever before.