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That is a fair summary Darius - although not the whole story - added to which many landlords won't take tenants in receipt of UC because they cannot get direct payment to landlord. Many landlords are also leaving the sector due to increasing regulation, legislation, and taxation, therefore there are fewer landlords to provide private sector accommodation, which means that those that remain can cherry pick their tenants and will almost certainly prefer professional tenants in receipt of a salary.The landlord associations have repeatedly warned that all these changes will end up impacting negatively on tenants, and it seems you are the first tenant to indicate that you are being affected (not that many tenants post on here).This video documents the challenges that are deterring landlords from being involved in the sector:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Problem is with a private tenant we get deposit and first month's rent the day they move in, I've got a couple that are now on UC he's been laid off work and its 8/9 weeks and haven't got a penny ... not their fault its just the system - it just doesn't work for landlords.
In a nutshell Darius the govt wants everyone to work for them for free. There will be no gold plated pensions mind you.
As far as UC system, the government could have just had a national register of landlords and pay them direct. By doing so, it would mean they would at least have collected taxes back. But then they wouldn't make as much money as from late self-assessment filings.So UC was born, they pretended like it was for everyone's benefit, how everyone will be responsible for their own budgets. It was a fudge. It was essentially a way for the govt to cut their deficit at the expense of private landlords. How? Tenants pay rent late. Landlord has to give them notice. Tenant falls into poverty trap waiting for their money to be restated. Landlord doesn't take them to court since he would be throwing good money after bad. Winner is the govt.They got £2-5k of free money at the expense of private individuals savings. Then to make matters worse, they call everything a civil matter. Remove legal aid so people don't have recourse to justice. Cut civil servants and magistrates, so evictions take 6-9 months. Would you take a housing benefit claimant on those grounds?
I will take benefit tenants but the council won't let them rent from me as
LHA for a room = 350, rent = 650-750
LHA for 3 bed property= 997, rent = 2000+
News in today:Significant changes are being made to the Universal Credit system that will see the housing element of the benefit paid directly to landlords at the start of a claim.
Currently, both social and private tenants who claim the controversial benefit are responsible for making rent payments to their landlord themselves.
But research shows that many tenants would prefer to have the assurance that their rent is paid direct to the landlord and now it would appear that their right to do this will finally be introduced as part of a new Universal Credit system.Full/source article
The whole system is a fuster cluck
I struggle to think of how one could design something so bad
As a LHA landlord of 20 years I can see the flaws as they are written
I know they wont work and they dont work time and time again
But its primary school mistakes the government make
And they are not at primary school so you know its a deliberate plan to deceive
They gave an alcoholic tenant of mine LHA paid direct to me
It then went to UC without my knowledge and the rent went to her
No one thought about informing me let alone asking me for a reference for her
But instead put £650 pcm in her pocket . They set her up to fail
She drank 3 months worth of rent and almost killed herself
They pick on the most vulnerable who have no support structures in place
It should be a transparent 3 way relationship between the landlord, the tenant and the DWP
The landlord though is purposely shunned and ignored
So it is planned fuster cluck with political motives and both the tenant and the landlords are sidelined
Jonathan Clarke. http://www.buytoletmk.com
It was working quite well (never very well, hey, it is Govt. after all) pre-UC - then some idiot decides lets save a couple of £quid by paying in one chunk.
The tenant gets shafted, plus the landlord as well!I'd forgotten that this was yet another Con pipe-dream (aka. stuff-up), yet another one to add to the long list of reasons not to vote for them again.