Posts with tag: housing benefit

Benefits freeze to end today – Crisis responds

Published On: February 10, 2020 at 9:25 am

Author:

Categories: Tenant News

Tags: ,,

Today (Monday 10 Feb) MPs are scheduled to announce the end to the freeze on benefits. They will do so by agreeing to increase income-related benefits in line with inflation.

Alongside this, Citizens Advice has released new research finding that the number of people who are unable to cover their living costs has increased since the benefits freeze started in 2016.

The results of this research also show that almost 4 in 10 households that seek debt advice and receive benefits (including housing benefits) would still not have enough money to cover their costs by 2024. This is even if these rises were to continue in years to come.

Jon Sparkes, Chief Executive at Crisis said: “Right now, across the country thousands of people are battling to keep their head above water by going without food or missing a crucial bill payment, just to be able to cover their living costs – this includes being able to cover their rent.

“No one should be forced to live like this, especially when we know we have the means to fix it. 

“Following years of cuts, unfreezing benefits to rise in line with inflation is a sticking plaster to a societal problem that has far-reaching, and often devastating, consequences. 

“Too many people are living in poverty, at risk of losing their homes, or already are homeless – increasing housing benefit by inflation won’t be enough to change this. 

“By investing in housing benefit, so it covers the true cost of rents, the Government will ensure that everyone has the security of a safe home – anything less than this is simply unacceptable.” 

Government announces end to benefit payments freeze

Published On: November 5, 2019 at 10:06 am

Author:

Categories: Tenant News

Tags: ,

The government has now confirmed that the freeze on benefit payments, announced in the 2015 Budget, will end in 2020. The Department for Work and Pensions has announced that working-age benefits, such as Universal Credit and Jobseeker’s Allowance, will rise by 1.7% from April 2020.

Work and Pensions Secretary Therese Coffey said: “We’re clear the best way for people to improve their lives is through work, but we know some people require additional support.

“Our balanced fiscal approach has built a strong economy, with 3.6 million more people in work since 2010. And it’s that strong economy which allows us to bolster the welfare safety net by increasing benefit payments for working-age claimants now.”

Responding to this announcement, Jon Sparkes, Crisis Chief Executive, said: “Everyone across Britain should be able to rent a safe, affordable home where they can build their lives from. So, it’s extremely disappointing to see the government’s commitment to lift the freeze on housing benefit fall short of enabling people to afford to keep their homes. 

“Right now, families on the lowest incomes are facing agonising stress and anxiety because they cannot afford to pay their rent. This is made all the worse when we know it doesn’t have to be this way. Our research shows that by investing in housing benefit, so it covers the true cost of rents, government could lift more than 35,000 children out of poverty.

“Putting families at risk of homelessness cannot be allowed to continue. We can make renting affordable for everyone, but we need to see all parties commit to investing in housing benefit rates, so they cover at least the cheapest third of rents across the country. The time for action is now.”

It is estimated that the benefits increase will cost £5bn. Ministers have stated that this decision to end the freeze will help 10 million people.

Should housing benefit increase in line with UK rent prices?

Published On: October 10, 2019 at 8:17 am

Author:

Categories: Tenant News

Tags: ,,,,

Did you know that today is World Homeless Day? This is an awareness day that takes place around the world on 10th October in order to change the lives of homeless people in their local communities.

As such, Crisis and The Joseph Rowntree Foundation are calling on the Government to invest in Local Housing Allowance (LHA), the housing benefit aspect of Universal Credit. This is due to the opinion poll published today, which shows 75% of respondents agree that housing benefit should increase if rents go up.

A survey was commissioned by the charities and conducted by Public First. Over 4,000 UK adults were involved, with 76% responding that housing benefit is a practical way for Government to stop people experiencing homelessness in the first place.

Housing benefit was originally designed in 2011 so that people on low incomes could afford the cheapest 30% of private rentals in their area. However, there has since been a lack of investment and a four-year freeze since 2016. The rates now fall woefully short of the true cost of renting, which continues to rise in many parts of the country. 

Research published by Crisis earlier this year shows that housing benefit shortfalls have led to little to no affordable private housing in many areas across the UK. The charity believes that this is pushing thousands of individuals and families to the brink of homelessness.

Jon Sparkes, Chief Executive at Crisis, said: “A safe and stable home is fundamental to our dignity and humanity. But every day, we hear of people losing their homes as the constant pressure of rising living costs become impossible to bear.

“The Westminster Government has committed to reduce homelessness, but without addressing the root causes such as unaffordable rents, homelessness will continue to rise. Housing benefit is an important tool and could be the quickest and most effective way to prevent homelessness in the short term, but it is fundamentally flawed because of severe under investment. Ending homelessness is truly within our capabilities and government must act now to deliver on its promises.”

Darren Baxter, Housing Policy and Partnerships Manager at The Joseph Rowntree Foundation, said: “A home should be an anchor against being swept into poverty but for many families the cost of renting a home is adding an extra strain. 

“It does not have to be this way. We can ensure housing costs do not push households into poverty if we invest in building the low cost rented homes and, in the short term, invest in housing benefit so that it reflects the real costs of renting.”

Is ‘No DSS’ Finally Becoming a Thing of the Past in the Lettings Industry?

Published On: April 3, 2019 at 8:01 am

Author:

Categories: Lettings News

Tags: ,

Buy-to-let landlords will no longer have to agree to a ‘No DSS’ term, when taking out a mortgage with The Co-operative Bank.

Platform, the intermediary lender for The Co-operative Bank, has removed this restriction from its lending criteria. Landlords taking out a buy-to-let mortgage with them will no longer have to worry about letting to tenants in receipt of housing benefit.

With the recent call from the Government to end ‘No DSS’ adverts, led by MP Heather Wheeler, the Minister for Housing and Homelessness, we have seen a trickle of change.

In March, Zoopla announced its plan to ban the phrase ‘No DSS’ from being used in any housing advertisements on its website, in line with Heather Wheeler’s movement.

During the same month, NatWest and Nationwide also removed restrictions from its terms and conditions that prevented buy-to-let landlords from letting to tenants in receipt of housing benefit.

NatWest specifically was highlighted in the media for previously having a ‘No DSS’ term, as last October news spread that the lender had informed a landlord that it would no longer continue her buy-to-let mortgage, as it was the bank’s policy not to allow rentals to benefit claimants.

Gordon Soutar, managing director of mortgages at The Co-operative, commented: “We are glad to be able to remove this condition to the benefit or our landlords and prospective tenants who previously may have been restricted from taking up tenancy due to the inclusion of this letting condition in our mortgage terms and conditions.

“Our charity partner, Centrepoint, has raised this issue and the potential impact that this condition of let could have on the young people they work with. This is not a condition that we want to continue to include in the mortgages that we offer and we will no longer enforce these clauses in our mortgage terms and conditions from Monday 1st April and we will completely remove this condition from our processes and systems with a completion date of 19 May 2019.”

Eviction Company Compares Tenants to Vermin in Advert

Published On: August 8, 2017 at 8:09 am

Author:

Categories: Property News

Tags: ,,

An eviction company has caused outrage after comparing tenants to vermin in one of its advertisements.

The marketing campaign by Remove a Tenant, which targets residential property owners, features a piece of cheese below the caption: “Are your tenants pests?”

The firm offers packages to landlords and letting agents across Britain for as little as £50, and claims to have “significant expertise” in dealing with housing benefit claims.

Campaigners for tenant rights have complained that the advert on Facebook was “beyond unacceptable” and should be removed immediately.

They added that likening tenants to rodents was a “grim irony”, considering one in nine rental homes has a pest problem.

The dispute arose as a record number of tenants have been evicted from their homes in Britain, with more than 40,000 ejected in 2015, the latest figures show.

The website for Remove a Tenant, which is based in Hampton-in-Arden in Solihull, West Midlands, states: “It is often said that the law regarding tenant eviction is always on the side of the tenant. This is true to a degree and forms part of the protection against eviction.

“Tenants, regardless of circumstances, do have rights and this is why the steps taken have to be carried out correctly in order to get a successful possession.”

Housing campaigners said that the company’s advert should be taken down immediately.

The Policy Officer of housing charity Shelter, John Bibby, reacts: “It’s beyond unacceptable to see tenants being compared to rodents, and an especially grim irony when nearly one in nine private rented homes has recently had a pest problem.

“We’re amazed this advert was posted in the first place, and it should be taken down immediately. Between shelling out for colossal rents, being forced to live in flats crawling with mice or rats, and having the threat of eviction hanging over them, many renters have enough to deal with without this sort of rubbish.”

Seb Klier, the Campaigns Manager of Generation Rent, a tenant lobby group, says that comparing tenants to vermin gives an insight into the way some landlords and agents view renters.

He explains: “When trying to find a home, it’s common for renters to encounter a long list of prohibitions – no benefits claimants, no families, no pets – which not only reduces their choice on the market, but creates a negative atmosphere before anyone even moves in.

“This negativity increases in a market where a tenant who makes requests for repairs, or attempts to negotiate down proposed rent increases, is too often seen as a nuisance to be got rid of.”

He insists: “If we are serious about having a long-term, professional private rented sector in the UK, it’s vital that tenants can treat where they are living as their actual home, and not just be viewed as a temporary inconvenience to the owner of the property.”

An employee at Remove a Tenant said that a marketing company had created the adverts some time ago and the firm had not received any complaints about them.

It came as statistics last month revealed that a record number of tenants are being evicted from their homes, with more than 100 renters per day losing the roof over their heads.

The spiralling cost of renting a home and a long-running freeze on housing benefit are being blamed for the rising number of evictions.

Recently, calls were made for unregulated eviction firms to join a redress scheme.

What do you think of the controversial advert?

ICA-JL-VOTE-FOR-US

Landlord told to repay over £39,000

Published On: January 6, 2017 at 2:59 pm

Author:

Categories: Finance News

Tags: ,,,

A buy-to-let landlord who failed to gain a licence for a property in London has been told to repay nearly £40,000 after being taken to court by Islington Council.

The Council made the call to reclaim to money it paid to Landhouse Ltd in housing benefits relating to a HMO. This came after the firm admitted to renting out the property without the sufficient HMO licence.

Inspections

Environmental health officers from the council conducted an inspection of the property and found it to be overcrowded and poorly managed. There were a number of fire hazards present throughout the property.

During a hearing at the Property Chamber, London Residential Property First Tier Tribunal, the landlord was told to pay £14,140 in both costs and fines. This was alongside repaying the council £39,022.52 in housing benefits, relating to the period when the flat was rented without a licence.

Landlord told to repay over £39,000

Landlord told to repay over £39,000

Now, Landhouse Ltd has applied for a licence, but is still liable to repay the benefit, which will be returned to a central Government housing benefit consolidation fund.

Councillor Diarmaid Ward, Islington Council’s executive member for housing and development, said: ‘More and more people rent privately in Islington and we’re committed to helping make sure they have decent homes to live in. We will take action when landlords do not keep within the law and as this case shows the costs can be very significant.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/landlord-ordered-to-repay-39-000-rent