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.

I've been a renter and single parent for 7 years now ( sold house upon divorce but very little equity in it )
I've always worked full time and never missed a rent payment, that and council tax are my number one bill payment priority.
I was made redundant during the first lockdown and still looking for a permanent job so am claiming UC.
My landlord is generally good but I won't be telling him I'm on benefits.

@IndieTara my landlord already knows I'm on benefits and student income but I too would not say anything if it happened while in the property.

*All the landlords I know avoid benefits claimants. They won’t do it openly now, you just won’t pass their referencing if you can’t supply six months’ bank statements and payslips. Perfectly legal to ask for these AFAIK.

If you lose your job and fall behind on the rent there are all sorts of legal ways the landlord can make life difficult for you*

But that completely ignores that the vast majority of housing benefit claimants can produce 6 months wage slips as they are in work and if they lost their jobs, they’d be entitled to extra benefits to pay their rent so wouldn’t fall behind on their rent.

Why doesn’t bold work anymore? Gah!

@OlympicProcrastinator - you don't have to tell if they don't ask you, but you do if they do ask you

The 'ask' is part of my tenancy agreements as I don't want to invalidate my mortgages or insurance

It is now law not to discriminate against people on housing benefit; unfortunately it's not illegal for the mortgage and insurance companies to discriminate against landlords for letting to those people!

Currently, I would have to change a mortgage/ insurance in order to accept something on HB; this would cost a lot and many landlords have to pass that cost on. Sadly the crux of the matter is it costs more to let to people on benefits

Of course it all depends on the property too.

Mine goes for about 30% more than the lha. It's a very nice house in a sought after area.

If my tenants solely rely on UC/HB, they will be down by over £300 a month which is a lot for a family in benefits.

It's not always just a case if not wanting to lease to people on benefits but simple affordability.

@jackstini

Even if that is placed in a tenancy agreement it is not legally enforceable. Lots of tenancy agreements have stipulations put in them, such as allowing viewings for example, that have no basis in law. This is one of them. There is absolutely no obligation in law for a tenant to reveal their source of income to a landlord, even if asked, even if it is in a tenancy agreement.

The only time anyone needs to disclose their source of income in this unstable is when instructed to do so by a court.

Mine goes for about 30% more than the lha

Standard. I've just done a quick search on Rightmove and there's only one property in this town that's within the LHA rate for a two bedroom place. There's only another three that are within fifty quid of it. Anyone who gets LHA has for years been used to topping it up. I mean, that was inevitable when it was cut - I think ten years ago? - but without a corresponding rent cap.

Buttercup2021

My local council will rent my flat but it’s a five year fixed contract

I would be happy with two years but not five my circumstances can change and I may need to sell my property. Some tenants have wanted a two year contract most want a year

[quote chubbycheeks26]@emilyfrost then by that logic everyone whose working full time with not benefits my not 'pay up

Why wouldn't a guarantor pay? They'd end up in court owing it so 🤷‍♀️[/quote]
You’re missing the point spectacularly. Those working full time have their own stable income that they’re in charge of, benefits claimants are reliant on the state for each payment.

Hence the risk for those on benefits is much higher and few landlords are willing to accept them. Renting, whether you agree or not, is a business, not a charity or a goodwill gesture, and landlords rightly want to ensure they take on the least risky tenants possible.

If you’re actually asking the question about why a guarantor wouldn’t pay you’re very naive indeed. It happens, regularly. A guarantor is little to no extra good.

Even if a tenant has a guarantor the property still needs insurance As this doesn’t only cover rent not paid

If the property were to say be flooded as a landlord you are responsible to home your tenants in suitable accommodation until property is safe/adequate to return to or until they find a suitable property (within the tenancy term)

A guarantor is not going to pay for that and a deposit is only for damage to the property that they have done it’s not for unpaid rent

Those working full time have their own stable income that they’re in charge of, benefits claimants are reliant on the state for each payment

Unfortunately the state can (and does) withdraw those payments at any time at all, sometimes for no good reason and often with little chance of doing anything about it this side of hell freezing over

TBF paid jobs can also disappear - especially in the current climate - but that doesn't change the point that many LLs prefer an employed tenant, and one without HB top ups doubly so

@emilyfrost clearly my landlord thinks differently re guarantor, if they little extra good then they wouldn't be used.

Missing the point spectacularly? As are you, think this passed year has shown people's incomes are far from stable and I'm pretty sure people are reliant on employers paying them on time. I've seen employers not pay.

I've found more insecurities in any job than being paid benefits, as if you claim correctly and not fraudulently, payments being stopped are rarer than people losing their jobs.

I don't think it will change. We have been trying to move in to different rented accommodation for a year. We're not on benefits but rubbish wages and LLs always go for those on higher wages.
There are always going to be people making good money even in these times. And LLs are obviously going to rent to those on higher income as, they assume they're less likely to miss payments.
Also since Covid struck rents have shot up and most peoples benefits won't cover rent costs.

Renting, whether you agree or not, is a business, not a charity or a goodwill gesture, and landlords rightly want to ensure they take on the least risky tenants possible.

Absolutely this.

@OlympicProcrastinator

I took that from Citizens Advice:

Do you have to tell your landlord if you receive housing benefit?
Some landlords and letting agents might say they won't let you rent from them if you get Housing Benefit or housing costs payments through Universal Credit. You only need to tell your landlord or letting agent you get Housing Benefit or Universal Credit if they ask.
Finding a home to rent - Citizens Advice

sorry, but that's the truth. However much Shelter lie about the rules.

If they were that bothered they'd use some of their income to, er, provide some shelter. Or try to get the insurers and mortgage providers to allow benefits tenants in all cases, perhaps by offering their own guarantee scheme. They don't, they are purely a lobbying organisation with a not-well-hidden agenda.

my insurers do allow benefits claimants, which means I do as well.

Shelter’s routine advice to not move out until you’re legally forced to do so is appalling as well. It may be legally correct, but it makes it pretty much impossible to find another tenancy in the private rental sector again. Far better to ask your landlord if you can end your tenancy early because you can’t afford it, so you can start again with a clean slate.

It can work, when given notice. It depends on availability and allocations policy in your area.

Eg if you go to the council as soon as you get notice, you'll get a priority bump of some sort. In some LA areas, that bump means you could be housed within a few months. Unlikely to be two (ie the notice period from your soon to be ex landlord), could be four to six with a fair wind and some luck. People can see for themselves how the list is behaving when they go on with their new priority. If they're moving rapidly up and within the top ten being considered for allocation of public housing within the two months' notice period, they would be truly crazy to throw in the towel and just get another private let: by the time it all rolls through court and is enforced they'll likely have a tenancy.

On the other hand, if people are really unable to find another private let due to stipulations re income and top ups etc, then again it's not in their interest just to move out after notice as they don't have anywhere else to go.

@jackstini

Of course when you actually take out a tenancy you need to be truthful because they ask you for evidence and do a credit search. So if you are asked at the point of taking out a tenancy, you can’t lie.

But if after taking out a tenancy you change your job, lose your job, win the lottery, sell drugs, rob a bank etc to pay the rent, in legal terms you are under no obligation to tell your landlord and provided you continue to pay your rent, there is no reason for them to know. Of course my last two scenarios might get you in trouble with the police

If you go into arrears, you may be taken to court and a judge would ask you where your income comes from, but aside from that, a landlord can ask but unless you are in the process of taking out a tenancy, you absolutely do not need to tell them.

Renting a house from someone does not give them any rights over your privacy. The DWP are not allowed to contact your landlord without permission from you either.

This applies to private landlords only by the way. There are different rules applicable to social housing landlords.

Here is Hammersmith and Fulham’s guidance to landlords. Whether or not the citizens advice says you should tell your landlord if asked, I promise you, legally you do not.

As others have said I have had numerous BTL mortgages and all forbid letting to those on benefits. I had hoped the recent case would change this but there have been no updates to our t&c and we now have long fixed mortgages so I won't be swapping them.

My ds tennants are all on benefits, he honestly won't take one who isn't.
When lockdown was announced he went round, took them a hamper and told them to contact him if their worked changed and they couldn't afford the rent, and he'd come up with a plan.
He is an ethical LL he also owns several houses, I don't quite understand but they are tenants for life. The tennant family can live their until death, but nobody else can be added, or something.
I'm really proud of him as we are and always been poor.

As posters have said depends on mortgage situation with the landlord. I work for a private landlord with 100 properties, no mortgages on any of them. Half the portfolio are benefit claimants, some very long term, so no issues renting to people on benefits. In the current climate these tenants are probably the safest in terms of rent arrears. Nothing wrong with benefit tenants, however we wouldn't take tenants with CCJs or IVAs.