To think landlords are more likely to accept benefits now?

[chubbycheeks26]

Given then current situation and many families being forced on to benefits?

Or even mortgages and insurance policies allowing it? Could rents rise? All seems like it could be a complicated mess. They'll have a tough time renting to just keywords with stable jobs.

Its confusing as I was told that its not the landlords who wont/cant rent to people on benefits but its more to do with the rules of their mortgage providers/insurance companies, however when I mentioned this on a Shelter Facebook post they told me this isn't true any more, if that is the case in 100% of mortgage providers and insurance companies, then I cant see why they cant rent to people on benefits, however I believe that LHA/housing benefits are paid in arrears so maybe a change in the benefit system would also be needed

I let out my flat just before Christmas to a lady on benefits who had been in emergency accommodation. There was no issue with my mortgage or insurance but it is a pain that she moved in on 9th December and I won’t see any rent until 11th Jan by which time l have paid for my first and second months rent in my new place (NHS worker moving city but can’t sell due to cladding). Also the security deposit is paid by the council but there was a massive hold up - no idea why they just seemed very slow and unresponsive.

@Oldsu they maybe paid in arrears but you can get an advance on UC to pay it upfront, also to move in somewhere you need to pay upfront a deposit and rent so by the time the benefit payment comes rent is not in arrears, just the benefits. E.g. I move in 1st June, I've paid the deposit and rent till 1st July, paid for June will pay for July's rent if you see what I mean?

@2PinkDaffodil2 I have heard of this scheme by the council for deposits but fortunately never had to use it, I've had the money available for a deposit and first months rent (partly a UC advance) so my rent has never been in arrears so the first benefit payment although for the previous month in arrears it pays the following months rent if you know what I mean. I'm a mature student now so I use my SF to pay the rent.

I doubt it, despite what change has or may be made to advertising laws.

however when I mentioned this on a Shelter Facebook post they told me this isn't true any more

Shelter should probably talk to NatWest then since my mortgage with them forbids it!

And Barclays too! Signed my new mortgage in Dec 2020 and it includes a restriction on letting to anyone on benefits.

Sounds like I got lucky, I get some benefits (not housing till I've moved in) and student income and they rented to me, thankfully I had my mother as a guarantor!

2/3 of the big lenders for buy to let prohibit benefit tenants and most insurances policies do as standard, unless you pay significantly more.
I have no idea where shelter gets that info from but I'd say its far from accurate

All my buy to let mortgages forbid renting to anyone on benefits. It changed I think when the benefit went to the tenant instead of straight to the landlord.

Goodness knows how we are supposed to know who's on benefits since Covid though and if I did there's no way I'd kick them out

Neither have I raised any rents in the past year

No evictions allowed at the moment anyway so would landlords have to changes their mortgages if their tenants circumstances change?!

I have let to people on some benefits before - as long as their sole income for the rent is not benefits I think there's a way round it but this thread is making me think I should check!

Thankfully my tenants have all been ok - as a landlord I would get absolutely nothing under furlough or self-employment payments if they had stopped paying

@jackstini with universal credit, it's better that it goes to the tenant - their payments to landlords are done i batches every 8 weeks and most of the time the tenant is required to top up their LHA, for example my LHA was £125 short of rent before I moved out prior to the pandemic.

@Pleaseaddcaffine I just wander if this will change given the rapid overnight change in people's circumstances.

If a family are already renting and now unfortunately find themselves having to claim benefits as long as they don’t miss any payments the landlord wouldn’t know.

@Daisysflowers but wouldn't insurers/mortgage lenders find out if a claim was made for unpaid rent etc?

@chubbycheeks26 well yes for the ones that don’t pay the rent it would come out but for a majority that continue paying then no one would know.

@chubbycheeks26 Our insurance for unpaid rent just cancelled about two months into Covid - the insurer told us it wasn't viable anymore. Just solidified my view of the entire insurance industry.

I'm afraid I'm a case of once burnt with renting to someone whose sole income was benefits - never again. It was fine until the switch to UC, when the tenant began receiving the money and we stopped being paid a penny. Eventually we managed to get it paid directly to us, but several months in arrears. We found out after we'd evicted the tenant that she'd successfully applied to the council for a discretionary housing payment to repay her arrears - never saw a penny of it!

We can't afford to risk it again. But if the current tenant lost his job, so long as the rent was paid we'd never know if it was from benefits or not.

@ginandronicformeplease it such a shame people like that give all benefit claimants a bad name, I'd be so grateful for a lovely home for me and my daughter I couldn't not pay my rent - it only leads to one thing for the tenant - Homelessness! And a landlord out of pocket. However, I suppose I have guarantor so I don't always have the issue and the landlord is assured that they will receive their rent (I wouldn't want to break the trust of my mother who is my guarantor either!). I could never really see the difference as it seems to be more based on judgement that benefits are for scumbags but in reality anyone can lose their job so their income isn't really all that stable. If I've learned anything this year is that we take too much for granted and a lot of us who judge people on benefits are now on benefits themselves and most of us are only one paycheck away from them.

I don't think LLs are likely to be more accepting of benefits unless a lot of other things change, including:

Lender restrictions
HB paid to tenant rather than LL
Current embargo on evictions
LL liable to pay if claim turns out to be fraudulent

@chubbycheeks26 but even every 8 weeks and not the total rent cover you could guarantee some

When it was paid directly, DSS tenants were actually preferred as the government would always pay!

Banks don't like relying on the tenant as much unfortunately

I was left £2.5k in arrears with a wrecked house last time so am nervous to risk it again

@Puzzledandpissedoff I was under the impression fraudulent claims to were to be paid back by the tenant? They certainly are when all benefits are paid to the claimants.

I've heard conflicting info. I began a training course for citizens advice bureau when in a pickle about myself about this very issue.
They said that it was absolute rubbish and prejudice against people on benefits but I've also heard from a landlord (not mine) that it was an issue.
I'd bet CAB were telling the truth but I don't really know.
It could have been something of the past that still carried weight and is still believed. It could also be landlords being judgemental and/or wary about stereotypes.
The fear of a landlord not accepting my benefits has been a massive issue for me. There's not many that do and some letting agents are very abrupt when you ask about their policies on it.

@jackstini I'm sorry that happened to you . Please don't think we're all like that though. I know some people who work full time, no benefits, perfect credit rating and are less than desirable characters. One in particular had their flat raided twice by the police before they moved out and I can categorically say that issue wouldn't happen with me!

I don't plan to be a student/on benefits forever so I'm hoping this isn't too much of an issue in the future 😊

Given the lack of social housing and the colossal list that some people spend their life on without being successful, it's horrendously annoying.

I was under the impression fraudulent claims to were to be paid back by the tenant? They certainly are when all benefits are paid to the claimants

You could well be right; I got that one off here and probably should have known better!!

I think it's still the case that fraudulent tenants' claims have to be repaid by the LL if it's been paid directly to them though?

@Gogreengoblin the fear has always been a massive issue for me too, even with a well paid homeowner and good credit guarantor some landlords have a given a flat no but I feel lucky to have a landlord that's taken me now so they are out there!