Posts with tag: benefits

Nationwide also Removes Restrictions on Letting to Benefit Tenants

Published On: March 22, 2019 at 11:00 am

Nationwide has announced that it is the latest lender to lift restrictions that prevent buy-to-let landlords from letting their properties to tenants in receipt of benefits.

The move follows NatWest caving in to industry pressure earlier this month, by lifting restrictions on landlords letting to DSS tenants.

In October, NatWest’s lending practices came under attack after the bank told one landlord that she would either have to evict her tenant of two years, or take her mortgage business elsewhere, due to a blanket ban on benefit tenants.

Paul Wootton, the Director of Home Propositions at Nationwide, says: “Everyone should be able to access a safe and secure home suitable for their needs, but the continued presence of no DSS restrictions in the private rented sector denies this right to a group of people who are often in desperate need of somewhere to live. The repercussions of not being able to access good quality housing may leave many living in substandard properties.

“Nationwide is categoric on this issue – we do not place restrictions on landlords that could stop them letting a home to tenants in receipt of benefits.”

Around two-thirds of the largest buy-to-let lenders do not allow landlords to let their properties to tenants in receipt of housing benefits.

However, the Work and Pensions Committee has now written to a number of mortgage lenders about potential discrimination against benefit tenants, due to clauses in their lending policies.

Wootton explains the effect on Nationwide: “Recent interest in this issue, most notably from the Work and Pensions Select Committee and Shelter, with whom we have worked closely for a number of years, caused us to review both our own historic lending, and the terms of those societies we took over during the financial crisis.

“As a result, we identified and started contacting around 12,000 mortgage customers to reassure them that Nationwide has never and will never enforce any historic clauses, which might restrict them from letting to tenants in receipt of benefits, which their original mortgage terms may contain.”

He believes: “The increased focus on this issue is welcome, as are positive moves made by others, and we urge everyone, including lenders, agents and landlords, to consider what they can do to end this unfair approach. Tenants need certainty and consistency, and the industry needs a unified approach if we are to make a real impact.

“While it’s imperative that any blanket lettings restrictions are lifted, Government needs to ensure that the benefits system works properly to provide confidence for landlords.”

Wootton adds: “Nationwide believes everyone deserves a place fit to call home, but we need a more joined up and long-term approach to ensure this aspiration can be delivered.”

Campaigners Target NatWest Branch over Buy-to-Let Mortgage Terms

Published On: November 27, 2018 at 9:03 am

Author: Em Morley

Categories: Finance News

Tags: benefits,mortgages

Campaigners targeted a NatWest branch at the weekend over its so-called discriminatory buy-to-let mortgage terms.

The campaigners oppose the fact that mortgage lenders restrict whether landlords can let to benefit claimants. They attempted to voice their discontent by storming the Bristol branch of NatWest on Saturday.

Activists from campaign group Acorn demonstrated outside the branch in Broadmead. They handed out leaflets to customers and passers-by, as part of an organised protest against what they see as discriminatory buy-to-let mortgage terms.

The protestors did attempt to enter the branch, but were denied access by security and the police.

There are growing calls for the Government to tackle discrimination against benefit claimants, after it emerged last month that NatWest told one landlord that she would either have to evict her tenant of two years or take her mortgage business elsewhere, due to a blanket ban by the bank on tenants claiming benefits.

The bank’s own buy-to-let mortgage terms state: “We will not consider multiple tenancies, Homes of Multiple Occupancy, bedsits, DSS tenants or ‘Related Person’ tenancies.”

Research by the Residential Landlords Association (RLA) found that two-thirds (66%) of mortgage lenders representing 90% of the buy-to-let market refuse a loan where a tenant is claiming benefits.

Last week, the Work and Pensions Committee blasted lenders for adopting no DSS policies.

However, the CEO of the Royal Bank of Scotland group, Ross McEwan, justified the clause in a letter to MPs: “In line with a number of other lenders… our mortgage policy for landlords with smaller property portfolios… includes a restriction on letting to tenants in receipt of housing benefit.

“This reflects evidence that rental arrears are much greater in this segment of the market and we are satisfied that this restriction does not contravene equality legislation.”

Regardless, NatWest has confirmed that it is now reviewing its buy-to-let mortgage terms.

Landlords are Helping to Fill Social Housing Sector Gaps, Insists RLA

Published On: September 20, 2017 at 9:10 am

Author: Em Morley

Categories: Landlord News

Tags: benefits,social housing,tenants

Landlords are Helping to Fill Social Housing Sector Gaps, Insists RLA

Landlords are helping to fill gaps in the social housing sector, insists the Residential Landlords Association (RLA) in response to a controversial call made by the National Housing Federation (NHF).

The Chief Executive of the NHF, David Orr, has called for money paid in housing benefit to tenants in the private rental sector to be diverted to social housing providers.

But the Policy Director of the RLA has hit back, insisting that landlords are helping to fill the gaps in the social housing sector.

He said: “The private rented sector plays an increasingly important role in housing some of the poorest and most vulnerable tenants, many of whom have already been let down by social housing providers. Local authorities are now dependent on the private rental sector to meet their homelessness obligations.

“It is also wrong to claim that private landlords do not invest in new housing. Off-plan purchases by private landlords are key to unlocking new developments, providing badly needed finance for new homes, up-front.”

He continued: “The RLA has long argued that we need more homes to be built, across all tenures, but recent Government policies have stalled the housing market. Instead of seeking to split the housing sector, the NHF should be working in partnership across the housing sector, to press the Government to adopt investment-friendly policies that will kick-start housing growth.”

Do you house tenants that were once reliant on the social housing sector?

We remind all landlords with tenants on housing benefit to get up to date with the new Universal Credit scheme, which will continue to be rolled out across the UK over the end of this year and next year.

We have a comprehensive guide to the Government’s new welfare system to help you understand what it will mean for you and your tenants: https://www.justlandlords.co.uk/news/landlords-guide-universal-credit/

Reputation of good landlords being tarnished by the bad

Published On: April 12, 2017 at 10:28 am

Author: Em Morley

Categories: Landlord News

Tags: benefits,Buy-to-Let,landlords,rental returns

Local councils have called on the Government to close a legal loophole permitting landlords to covert properties into multi-units that are marketed as self-contained flats.

Many landlords do this in order to secure the maximum level of housing level of housing benefit payments, that are paid directly to landlords on behalf of tenants.

Scam

The Local Government Association (LGA), which represents over 370 councils in England and Wales, feels that the housing benefit scam is leaving some tenants to live in poor and dangerous conditions. As such, the ‘Association has called for some accommodation to be closed and for more rogue landlords to be jailed, as opposed to being fined.

Industry figures indicate that private landlords received £9.3bn in housing benefit during 2015, over double the £4.6bn in 2006.

Councillor Judith Blake, LGA Housing spokesperson, observed: ‘No landlord can act outside the law and councils will do everything in their powers to ensure tenants can live in rented properties safe in the knowledge that local authorities are there to protect them.’[1]

‘However, the reputations of all good landlords are being tarnished by the bad ones and councils are being let down by the current system. Legislation is not keeping pace with the ingenuity to exploit loopholes which need to be closed as soon as possible,’ she added.[1]

Reputation of good landlords being tarnished by the bed

Powers

Continuing, Blake said: ‘Legislation needs to be more joined up to prevent some landlords taking advantage of people at the sharp end of our housing crisis. Giving councils powers to be able to build more affordable homes is likely to be more successful at meeting necessary standards than the private rental sector, and help reduce the risk of tenants falling victim to potentially tragic and preventable consequences due to unscrupulous landlords.’[1]

‘Councils won’t hesitate to take irresponsible landlords to court for blatantly failing to comply with housing laws and any tenants who suspect their landlord of criminal behaviour or who have been evicted illegally should contact the housing team at their local council,’ she concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/4/the-reputations-of-good-landlords-being-tarnished-by-the-bad-ones-says-lga

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.

Next Phase of Universal Credit Roll Out for January

Published On: January 18, 2016 at 4:09 pm

Author: Em Morley

Categories: Finance News

Tags: benefits,rent arrears,Universal Credit

Next Phase of Universal Credit Roll Out for January

Last week, Universal Credit began its roll out across the country for 2016.

Today, more areas will be subject to the new benefits system, which sees six benefits roll into one. It is vital for landlords to be aware of whether their tenants will be receiving the new payments, as landlords will no longer be paid housing benefit directly.

As a result, they may see tenants fall into rent arrears.

Landlords with rental properties in the following postcode areas should discuss any financial changes with their tenants:

BR1 1, BR1 2, BR1 3, BR1 9, BR2, BR3 3, BR3 4, BR3 5, BR3 6, BR3 9, BR4, BR5, BR6 and BR7 in Bromley.
CR2, CR3 0, CR4 2, CE4 3, CR4 4, CR5 2, CR7, CR8 1, CR8 2, CR8 3, CR8 4 and CR8 9 in Croydon.
SE7, SE9 1, SE9 5, SE9 6, SE9 9, SE10 0, SE10 1, SE10 9, SE12 2, SE18, SE20, SE25 6 and SE25 9 of southeast London.
SW17 0, SW18 4, SW18 5, SE19 and SW20 of southwest London.
KT3 4, KT3 6, and KT4 8 in Kingston upon Thames.
TN16 1 and TN16 3 of Tonbridge.
DN8 4 and DN14 of Doncaster.
HU13 0, HU13 3, HU14, HU15, HU17 and HU18 in Hull.
S1, S2, S3, S4, S5, S6, S7, S8, S9, S10, S11, S12, S13, S14, S17, S20, S21 4, S21 5, S32, S33, S35, S36 1, S36 2, S36 3, S36 4 and S61 2 of Sheffield.
YO8 6, YO15, YO16, YO25, YO41, YO42 and YO43 of York.

We will be detailing all of the latest rollouts of the scheme on LandlordNews.co.uk, so remember to check back for landlord updates.

For the previous January roll out areas, go here: /universal-credit-january-roll-out/