Shelter Scotland and the Scottish Federation of Housing Associations (SFHA) raised their concerns in a joint report, First Month’s Rent Flexibilities, which calls for housing associations across Scotland to be as flexible as possible with tenants over payment of the first month’s rent and for the Scottish Government to increase the level of support available.

The organisations raised their concerns following growing evidence that the roll-out of Universal Credit, changes to the way housing benefit is calculated and the benefits cap are increasing the financial pressures on many households – both in and out of work. They fear a backlog of arrears for both tenants and housing associations which might never be paid off and could be followed by the possibility of eviction and homelessness.

Among several key recommendations on a local and national level was a call to have the option of only one week’s rent in advance and a call for the Scottish Government to introduce a repayable loan system to help new tenants with their first month’s rent.

Local level recommendations

National level recommendations

Sarah Boyack, head of public affairs at SFHA, said: “This report highlights the detrimental effects that delayed Universal Credit payments are having on social landlords and their tenants. Delays to housing benefit and poor communication from the DWP places tenants in debt before their tenancy even begins. This situation ultimately undermines the social housing model and instead of sustaining tenancies and supporting vulnerable tenants, puts both landlords and tenants in an even more vulnerable position.

“SFHA will work with its members, the Scottish Government and Shelter Scotland to mitigate the impact of Universal Credit and to find workable solutions which help people to sustain their tenancies.”

Adam Lang, head of communications and policy at Shelter Scotland, added: “It’s vital that homeless households, people on low incomes and people who can’t access other forms of housing can find a home they can afford. Social housing provides that safety net. But one month’s rent in advance for some households is simply not affordable.

“People starting their tenancy in arrears from which they may not recover is not in anyone’s interest, so flexible arrangements such as one week’s rent in advance or introducing repayable loans from the Scottish Government could make the difference between affording a home or not for many households.”