Housing providers are likely to have to collect an extra £7 billion in rent each year following the introduction of universal credit, according to research from Mobysoft.
The study, which covered around one third of the UK’s social housing stock found that rents being collected direct from tenants by housing officers will increase by 63 per cent on average.
The study found that housing providers in Wales are likely to be the worst affected, proportionally, by the increase in rent collections, with the managed rental income per officer (MIPRO) increasing by almost 75 per cent. The largest increase by income will occur in London, with the post-UC MIPRO expected to reach £4.46 billion each year.
Early reports have shown that up to 75 per cent of tenants in receipt of universal credit are already in arrears.