Feature/Change | Impact for Renters on Universal Credit |
|---|---|
No discrimination on benefits | Landlords can’t refuse or evict for claiming UC |
Periodic tenancies | More flexibility and security for renters |
Rent increase challenge | Right to challenge above-market increases |
Permitted grounds for eviction | Stronger protection against unfair eviction |
Housing element | Helps pay rent and some service charges |
Certainly! Here’s an article focused on Universal Credit, benefits, and the Renters’ Rights Act 2025:
Universal Credit, Benefits, and the Renters’ Rights Act 2025: What Every Renter Should Know
The landscape for renters on benefits is changing, and the Renters’ Rights Act 2025 brings new protections and opportunities for those claiming Universal Credit. If you’re a tenant or considering renting while on benefits, here’s what you need to know.
Universal Credit: A Lifeline for Renters
Universal Credit is a monthly payment designed to help people on a low income or out of work with living costs. For renters, the most important part is the “housing element,” which can help pay your rent and some service charges. The amount you receive depends on your income, age, household size, and actual housing costs. You’ll need to provide your tenancy agreement and details of your rent to the Department for Work and Pensions (DWP) to get the right support.
Key Features:
The housing element is paid as part of your monthly Universal Credit payment.
You’re expected to use this money to pay your landlord.
If you struggle to manage money or have rent arrears, the housing element can sometimes be paid directly to your landlord.
How the Renters’ Rights Act 2025 Changes Things
The Renters’ Rights Act 2025 introduces several important changes for renters on benefits:
No Discrimination Against Benefit Claimants
Landlords and letting agents can no longer refuse to rent to you just because you receive Universal Credit or other benefits.
Tenancy agreements cannot include clauses banning tenants from claiming benefits.
If you face discrimination, you have the right to challenge it and may have legal recourse.
Periodic Tenancies and Security
Periodic tenancies (rolling contracts) are now the default, giving you more flexibility and security.
You can end your tenancy with proper notice, and landlords must use permitted legal grounds to end it.
Rent Increases and Your Rights
Landlords can only raise rent once per year and must give at least two months’ notice.
If you think a rent increase is unfair or above the market rate, you can challenge it at the First-tier Tribunal—even if you’re on Universal Credit.
Eviction Protections
Section 21 “no fault” evictions are abolished.
Landlords must use one of the permitted grounds for possession, and cannot evict you simply because you’re claiming benefits.
Relevant Legal Provisions:
Discrimination: Renters’ Rights Act 2025, Chapter 5—Discrimination in the rental market (sections on benefits status).
Tenancy reform: Renters’ Rights Act 2025, Part 1—Periodic tenancies and permitted grounds for possession.
Universal Credit Regulations 2013—details on housing element and eligibility.
Conclusion
The Renters’ Rights Act 2025 strengthens protections for renters on Universal Credit and other benefits. You’re less likely to face discrimination, have more security in your home, and can challenge unfair rent increases or eviction attempts.
If you need help checking your tenancy agreement for banned clauses, want to challenge discrimination, or need guidance on your rights, Caira can review your documents and provide clear answers in seconds.
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