Posts with tag: Universal Credit

Call for Rent Caps on Properties Let to Housing Benefit Tenants

Published On: May 5, 2016 at 9:35 am

Tags: housing benefit,London,rent caps,tenants,Universal Credit

A local politician has called for rent caps to be introduced on private rental properties let to tenants on housing benefit.

The leader of Southend Council, Ron Woodley, believes London borough councils are using his town as a “dumping ground” when they cannot house homeless people.

Local authorities in wealthy areas are struggling to find affordable private rental housing for homeless people, as Local Housing Allowance, and now the housing benefit element of Universal Credit, is not sufficient enough to cover the high rent prices.

Woodley claims that London borough councils are sending people to Southend, as rents are cheaper.

Call for Rent Caps on Properties Let to Housing Benefit Tenants

In a number of London boroughs, private rent prices are far higher than the housing benefit cap of £26,000 per year.

Woodley believes that private rents for tenants on benefits should be capped to those charged in the social housing sector.

He says: “What I’m saying to the Government is they should be looking at the people living in the private rented sector subject to housing benefit and, over the lifetime of a parliament (five years), reduce rents down to that of social housing.

“It would save the Government something like £14 billion a year in housing benefit and would make housing in cities like London more affordable, so you’d stop the London boroughs sending people out of London because it’s cheaper elsewhere.”

He adds: “In many European countries, they have some sort of cap on what people can charge in rented accommodation and I think we need this to stop the private rented sector running out of control, which is what it’s currently doing.”¹

However, Martin Ransom of Pace estate agents in Southend, warns that reducing returns for landlords could discourage them from renting to tenants on housing benefit.

Since Universal Credit began its rollout across the UK, many landlords have been concerned about changes to their tenants’ finances. There have been reports of tenants being forced into long-term debt by the waiting times between payments.

Additionally, Judith Cordoran, the Chairman of the South Essex Association of Landlords, believes introducing rent caps could exacerbate the homeless crisis in Southend, but she says she is willing to discuss the matter with Woodley.

She explains: “Landlords either take tenants on DSS or they don’t. We don’t, but if you think about the economics of a scheme like this, you will end up with only the very low quality, unrepaired houses that have belonged to landlords for 50 years, at the low price Mr. Woodley is suggesting.

“I’m a huge supporter of his, but we just need to have detailed conversations and he needs to come to the association meetings held at the council offices and understand from the people who attend those meetings the reality of the situation.”¹

Do you believe that rent caps would help resolve this issue?

¹http://www.echo-news.co.uk/news/local_news/14468208._Reform_rent_system_to_keep_Londoners_out_of_south_Essex_/

Final Universal Credit Rollout of the Spring

Published On: April 25, 2016 at 9:05 am

Author: Em Morley

Categories: Finance News

Tags: housing benefit,rent guarantee insurance,tenants,Universal Credit

Since the start of the year, Universal Credit has been on a nationwide rollout. Today, the Government’s new welfare system finishes its rollout across the country for the spring.

Final Universal Credit Rollout of the Spring

We have been keeping landlords and tenants up to date on where the scheme is now in operation since January. For the previous postcode areas where Universal Credit is now in force, see our past article: /universal-credit-almost-end-rollout/

Universal Credit combines all benefit payments into one monthly payout. While this might work well for claimants, landlords are worried about their tenants falling into rent arrears, as recipients are now paid housing benefit directly.

If you are a landlord with housing benefit tenants, be aware that their financial circumstances will be changing (or may have changed already). It is important to communicate with your tenants about any changes to their finances. If you are worried about them falling into rent arrears, you can protect your rental income with Rent Guarantee Insurance.

As of today, Universal Credit is now in operation in the following postcode areas:

AB30 of Aberdeen.
CR0 0, CR0 1, CR0 3, CR0 5, CR0 6, CR0 7, CR0 8, CR0 9 and CR9 in Croydon.
DD2 5, DD3 0, DD4 0, DD5 3, DD5 4, DD7, DD8, DD9, DD10 and DD11 in Dundee.
FK14, FK15 0, FK15 9, FK19 and FK21 of Falkirk.
KY4 0, KY5 0, KY6 3, KY13 and KY14 in Kirkcaldy.
NE3 5, NE13 7 and NE18 of Newcastle upon Tyne.
PH1, PH2, PH3, PH4, PH5, PH6, PH7, PH8, PH9, PH10, PH11, PH12, PH13, PH14, PH15, PH16, PH17, PH18 and PH33 9 of Perth.
SE1 0, SE1 1, SE1 2, SE1 3, SE1 4, SE1 6, SE1 7, SE1 8, SE1 9, SE8 5, SE16 2, SE16 4, SE16 5, SE16 6, SE16 7, SE25 4 and SE25 5 in South Eastern London.
SM1, SM2, SM3, SM4, SM5 1, SM5 3, SM5 4, SM5 9, SM6 0, SM6 6 and SM7 3 of Sutton.
TW3 2, TW3 3, TW4 5, TW5 9, TW7 7, TW13 6, TW14 8 in Twickenham.

As Universal Credit continues its rollout in the summer, we will continue reporting on the areas that move onto the scheme.

Universal Credit Scheme is “Shambolic”, Say Landlords

Published On: April 20, 2016 at 11:07 am

Author: Em Morley

Categories: Landlord News

Tags: benefit tenants,housing benefit,tenants,Universal Credit

The Government’s new welfare system, Universal Credit, has been described as “shambolic” by landlords, with many saying they will now refuse to rent to tenants on benefits.

Research conducted by the Residential Landlords Association (RLA) indicates that the new scheme may have a disastrous effect on the private rental sector. The organisation found that landlords are frustrated with the new system, which sees benefits paid directly to claimants, who are then responsible for paying their own bills, including rent.

Landlords have also criticised the way that the Department for Work and Pensions is dealing with their enquiries and say the process for requesting direct payments from the Government is too long.

Universal Credit Scheme is “Shambolic”, Say Landlords

We have been providing landlord updates on the nationwide rollout of the scheme since the start of the year. For all of the postcode areas now on Universal Credit, see our latest piece: /universal-credit-almost-end-rollout/

One landlord that responded to the RLA says: “The Universal Credit system is mysterious, unresponsive and devoid of communication. I have made three applications. I received one payment, but no statement and I have no idea what the payment was for. I have not received any communication in response to the other applications.

“There are very long delays which are unacceptable, as arrears mount and I still have to pay the mortgage with no rent income. This is a disaster and will result in increased homelessness.”

The transfer from the old system to the new has also been slammed, with complaints about missing and delayed payments, leaving tenants in rent arrears. It has previously been reported that housing benefit claimants are being left in long-term debt.

The issue is now so severe that many landlords say they will no longer rent to tenants on benefits.

Another landlord insists: “I will stop renting to people on Universal Credit as I won’t get rent to cover mortgage payments. The system whereby tenants get payment rather than the landlord is shambolic, universally disliked, makes tenants vulnerable to addictions and homelessness, and prevents landlords from renting to people in receipt.”

The Policy Adviser for the RLA, Richard Jones, states: “Universal Credit and associated reforms make it harder to rent to people on low incomes and housing benefit, and we have a building body of evidence that the changes are making it harder for people in difficult situations to get their lives back on track.

“We acknowledge that the Department for Work and Pensions [DWP] has taken some action to correct things, but there is still a lot of work to be done. The issue is whether the DWP can deal with the scale of these issues, given that they have only been dealing with the simple cases so far.”

The RLA is currently organising meetings with the Government to discuss Universal Credit.

If you are a landlord with tenants on benefits, you can protect your rental income with Rent Guarantee Insurance, which ensures you still get paid if your tenant defaults.

Universal Credit Almost at the End of its Rollout

Published On: April 18, 2016 at 10:36 am

Author: Em Morley

Categories: Finance News

Tags: benefits,housing benefit tenants,tenants,Universal Credit

As of today, Universal Credit is now in operation in most of the UK. Below, we detail which postcode areas have moved onto the Government’s new welfare system.

Universal Credit Almost at the End of its Rollout

Since its introduction in 2013, Universal Credit has been on a nationwide rollout to new areas every Monday.

The new welfare system sees six payments rolled into one monthly payout, meaning that claimants receive all of their benefits in one. For those receiving housing benefit, the change also means that they will be paid instead of their landlord.

If you are a landlord of housing benefit tenants, you must be aware of this change, as it means that tenants are now responsible for paying their rent when it is due.

It is also important to note that many claimants have been forced into long-term debt since moving onto Universal Credit. Your tenants may be facing financial difficulty as their benefits change, so remember to communicate with them about any problems they are having. You can also protect your rental income with Rent Guarantee Insurance, which ensures you still get paid if your tenants default on rent payments.

For information on the previous areas that moved onto the new system, see our latest piece on Universal Credit: /following-areas-now-moved-onto-universal-credit/

As of today, the following postcode areas have moved onto Universal Credit:

DN6 7 in Doncaster.
LS25 1, LS25 2, LS25 4, LS25 7, LS26 8 and LS26 9 of Leeds.
S71 4, S72 9, S75 4 and S75 5 in Sheffield.
WF1, WF2, WF3 1, WF3 3, WF3 4, WF4, WF5, WF6, WF7, WF8, WF9, WF10, WF11, WF12 0, WF12 7 and WF12 8 in Wakefield.

We will continue to keep you updated of all the financial changes affecting the private rental sector, both for landlords and tenants.

The Following Areas Have Now Moved Onto Universal Credit

Published On: April 11, 2016 at 2:47 pm

Author: Em Morley

Categories: Finance News

Tags: housing benefit,rent arrears,tenants,Universal Credit

Universal Credit is almost at the end of its rollout across the UK, with the following areas now subject to the new welfare system.

The Government’s new benefit scheme sees six payouts combined into one monthly payment for claimants. Universal Credit includes housing benefit, which means if you have tenants in receipt of the payment, they may have moved onto the new system.

The Following Areas Have Now Moved Onto Universal Credit

We have been reporting on the areas that now use Universal Credit since the start of the year. For the previous postcode areas, see our most recent piece: /many-housing-benefit-tenants-wales-now-subject-universal-credit/

Another significant change that Universal Credit enforces is that tenants will now be paid housing benefit directly, rather than it automatically going to their landlord. If you have housing benefit tenants, be aware that they will now be responsible for paying the benefit to you.

If you are worried about your tenants falling into rent arrears during the change, you can protect your investment with the ultimate peace of mind cover – rent guarantee insurance. This will ensure that you still get paid, even if the tenant defaults on the rent.

As of 28^th March, the following parts of the country are now on Universal Credit:

E1 6, E2, E5, E8, E9 and E20 3 in Eastern London.
EC1V 1, EC1V 9, EC2A 2, EC2A 3, EC2A 4, EC2M 1 and EC2M 2 in Eastern Central London.
GU34 4 and GU34 5 of Guildford.
N1 3, N14, N1 5, N1 6, N1 7, N4, N5 2, N15 6 and N16 in Northern London.
PO1, PO2, PO3, PO4, PO5, PO6, PO7, PO8, PO9, PO10 7, PO11, PO12, PO13, PO14, PO15, PO16 and PO17 of Portsmouth.
RG7 2, RG7 3, RG7 4, RG7 8, RG14 9, RG19 8, RG20 0, RG20 4, RG20 5, RG20 9, RG21, RG22, RG23, RG24, RG25, RG26, RG27, RG28 and RG29 of Reading.
SO21 3, SO24 9, SO31 and SO32 3 in Southampton.
SP11 0 and SP11 6 in Salisbury.

From today, housing benefit tenants in the following postcode areas of Scotland will receive Universal Credit:

DD6 in Dundee.
FK10 3 and FK10 4 in Falkirk.
KY1, KY2, KY3, KY4 8, KY4 9, KY5 8, KY5 9, KY6 1, KY6 2, KY7, KY8, KY9, KY10, KY11, KY12, KY15 and KY16 of Kirkcaldy.

The scheme has just two further rollouts across the country before all claimants are on the system. Look out for which areas are subject to Universal Credit next week.

Many Housing Benefit Tenants in Wales Now Subject to Universal Credit

Published On: March 22, 2016 at 9:27 am

Author: Em Morley

Categories: Landlord News

Tags: housing benefit,tenants,Universal Credit,Wales

Yesterday, many housing benefit tenants across Wales became subject to the Government’s new welfare system, Universal Credit.

Many Housing Benefit Tenants in Wales Now Subject to Universal Credit

Under the new scheme, claimants are paid one monthly payment, rather than up to six individual payouts. As housing benefit is included within the Universal Credit system, landlords must be aware of the changes.

Additionally, while housing benefit was previously paid directly to the landlord, tenants are now responsible for paying their rent each week or month. You must communicate effectively with your tenants to ensure that you are aware of their financial circumstances.

Since January, many areas have moved onto the Universal Credit scheme, and we have been devoted to providing you with weekly updates of where the system is now in place. For the previous areas, see last week’s story: /universal-credit-rollout-continues/

We will continue to provide information for landlords on financial changes within the housing sector.

If you have rental properties in the following postcode areas of Wales, be aware that as of yesterday, any housing benefit tenants you have will now be in receipt of Universal Credit:

CF15 7, CF15 9, CF35, CF37, CF38, CF39, CF40, CF41, CF42, CF43, CF44, CF45, CF48 2, CF72 and CF83 1 in Cardiff.
SA11 5 of Swansea.

As your tenants move onto the new system, be aware that some claimants are being forced into debt by long waiting times or changes to their finances.

It is important to communicate with your tenants in order to avoid rent arrears. If you are concerned about your tenants struggling to pay the rent, the best way to protect your investment is with rent guarantee insurance, which ensures you still get paid if the tenant defaults.

For all of the latest advice for landlords, remember to visit LandlordNews.co.uk.