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Hideous Nightmare For Btl'ers As Economy Collapses

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http://news.bbc.co.uk/1/hi/uk/8152937.stm

Benefit tenants 'rip off' landlords

By Sukhi "Sookey" Hayer

BBC Asian Network

When the government started paying housing benefit to new private tenants rather than straight to their landlords last year, it was meant to give tenants more choice and help develop their budgeting skills - but instead it just means rents are not being paid, say some landlords.

Landlords are facing repossession because rent money does not arrive

"I've lost more than £56,000 and already had four houses repossessed because I've not been able to keep up with repayments." says Shazli Ahmed.*

Mrs Ahmed, 56, from Birmingham, is just one of a number of landlords struggling to make ends meet thanks to rent-dodgers.

She rents properties to tenants who claim housing benefit and is finding it increasingly difficult to collect rent that's owed to her since a new system was introduced.

"I was sitting in my car outside my rented house when I spotted my tenant coming towards me with what looked like a walking stick, so I lowered my window and that's when he began hitting me.

The dream of money for doing nothing and retiring on fat and ever growing rental income has ended as most on here said it would: in a nightmare of debt, worry and despiar. Massive unemployment means hundreds of thousands will no longer be paying their rent. It underscores the wisdom of that old saying: "owt for nowt."

__________________________

* :)

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Hmm can't help but feel a huge PR campaign is under way to get the government to pay landlords direct again. And as other posters have pointed out, it was changed because of fraudulent inflated claims by private landlords.

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http://news.bbc.co.uk/1/hi/uk/8152937.stm

Benefit tenants 'rip off' landlords

By Sukhi "Sookey" Hayer

BBC Asian Network

When the government started paying housing benefit to new private tenants rather than straight to their landlords last year, it was meant to give tenants more choice and help develop their budgeting skills - but instead it just means rents are not being paid, say some landlords.

Landlords are facing repossession because rent money does not arrive

"I've lost more than £56,000 and already had four houses repossessed because I've not been able to keep up with repayments." says Shazli Ahmed.*

Mrs Ahmed, 56, from Birmingham, is just one of a number of landlords struggling to make ends meet thanks to rent-dodgers.

She rents properties to tenants who claim housing benefit and is finding it increasingly difficult to collect rent that's owed to her since a new system was introduced.

"I was sitting in my car outside my rented house when I spotted my tenant coming towards me with what looked like a walking stick, so I lowered my window and that's when he began hitting me.

The dream of money for doing nothing and retiring on fat and ever growing rental income has ended as most on here said it would: in a nightmare of debt, worry and despiar. Massive unemployment means hundreds of thousands will no longer be paying their rent. It underscores the wisdom of that old saying: "owt for nowt."

__________________________

* :)

And they must not be allowed to walk away from their mess either.

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My late father had a house rented to someone on benefit who never paid rent for 3 years

He was actually renting the property out to someone else and when my father refused to do repairs after the tenent and the subtenant fell out and the subtenant thrashed the house the council did the repairs (£30K in 1988) and sent my dad the bill.

The tenant said he would vacate the property if we "bought" it off him at market price!!

I kid you not

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http://news.bbc.co.uk/1/hi/uk/8152937.stm

Benefit tenants 'rip off' landlords

By Sukhi "Sookey" Hayer

BBC Asian Network

When the government started paying housing benefit to new private tenants rather than straight to their landlords last year, it was meant to give tenants more choice and help develop their budgeting skills - but instead it just means rents are not being paid, say some landlords.

Landlords are facing repossession because rent money does not arrive

"I've lost more than £56,000 and already had four houses repossessed because I've not been able to keep up with repayments." says Shazli Ahmed.*

Mrs Ahmed, 56, from Birmingham, is just one of a number of landlords struggling to make ends meet thanks to rent-dodgers.

She rents properties to tenants who claim housing benefit and is finding it increasingly difficult to collect rent that's owed to her since a new system was introduced.

"I was sitting in my car outside my rented house when I spotted my tenant coming towards me with what looked like a walking stick, so I lowered my window and that's when he began hitting me.

The dream of money for doing nothing and retiring on fat and ever growing rental income has ended as most on here said it would: in a nightmare of debt, worry and despiar. Massive unemployment means hundreds of thousands will no longer be paying their rent. It underscores the wisdom of that old saying: "owt for nowt."

__________________________

* :)

It's so simple isn't it! Ban/Stop/End people buying properties that they have no business buying. It is so maddening!!!! Who is this woman to buy houses pricing other people out of a market greedily holding onto them having the tax payer directly paying for her retirement.

As far as I am concerned if you cannot afford to buy/nearly-buy a property outright to rent you have no business buying it.

You are simply distorting the market and earning money for absolutely f*** all....

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The govt says it will review this in 2 years.

Well, this govt can say what it wants ... but if it doesn't get done before early next year, it won't technically be this government.

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The govt says it will review this in 2 years.

Well, this govt can say what it wants ... but if it doesn't get done before early next year, it won't technically be this government.

Brown must be putting a "scorched earth" policy in place to make sure the Tories inherit the greatest possible disaster making it more likely that the voters will re-vote New Labour in next time around.

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They (gov) really are creating more repossessions, although i am laughing, it really is not fair to landlords, if they do not change this soon, it will have an horrendus effect on people who have btl's

but really this is one of the most stupid ideas the government have had, and they have had quite a few

review in 2 years, !!!!! it will be far too late then,

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Hmm can't help but feel a huge PR campaign is under way to get the government to pay landlords direct again. And as other posters have pointed out, it was changed because of fraudulent inflated claims by private landlords.

Too right, landlords want to go back to ripping off the taxpayer.

I know someone who realised that he would have a problem collecting the rent of his tenants, as they tended to be on benefit. He sold his property when he realised the implications of the changes.

At the Estate Agents, he asked why someone would want to buy the property with the changes.

"Wont the new owner have trouble collecting the rent?"

"No, two brothers will be buying it. They wont have problems collecting the rent."

People who dont pay their rent will eventually meet up with the landlords they deserve. I doubt very much any disputes will be settled in court.

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she wouldnt have lost £56,000 and been possessed if she OWNED the properties.

Sadly, if you leverage and the income is dependant on other people doing the right thing, then you are bound for disappointment.

It always was a high risk strategy...borrow at 5%, sell for 6% cant even get that now of course.

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They (gov) really are creating more repossessions, although i am laughing, it really is not fair to landlords, if they do not change this soon, it will have an horrendus effect on people who have btl's

but really this is one of the most stupid ideas the government have had, and they have had quite a few

review in 2 years, !!!!! it will be far too late then,

And this is a bad thing?

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she wouldnt have lost £56,000 and been possessed if she OWNED the properties.

Sadly, if you leverage and the income is dependant on other people doing the right thing, then you are bound for disappointment.

It always was a high risk strategy...borrow at 5%, sell for 6% cant even get that now of course.

Being a landlord should be a breeze if you own the properties outright. Properties in good areas and with decent tenants who you treat well should be a cash cow.

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Most people here accept that BTL has forced many into renting - because of the dual problem of shortages of available property and increased prices.

The simple solution is to enforce a period, say three months, during which only potential owner occupiers can bid for a property from the moment it comes to market.

FTBs would have a fair crack of the whip, BTLers would be pushed to the back of the queue. The result would be lower rates of HPI and a more equitable distribution of property without killing off BTL.

Edited by Dave Spart

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Most people here accept that BTL has forced many into renting - because of the dual problem of shortages of available property and increased prices.

The simple solution is to enforce a period, say three months, during which only potential owner occupiers can bid for the property.

FTBs would have a fair crack of the whip, BTLers would be pushed to the back of the queue. The result would be lower rates of HPI and a more equitable distribution of property while retaining opportunites to BTLers.

No more laws. We've got far too many already.

p-o-p

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Most people here accept that BTL has forced many into renting - because of the dual problem of shortages of available property and increased prices.

The simple solution is to enforce a period, say three months, during which only potential owner occupiers can bid for the property.

FTBs would have a fair crack of the whip, BTLers would be pushed to the back of the queue. The result would be lower rates of HPI and a more equitable distribution of property without killing off BTL.

Let the market be. It's sorting itself out as we speak.

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Let the market be. It's sorting itself out as we speak.

Yeah, I'm starting to think that way myself

A year or two back I'd have been all for putting rules in place to ensure FTBers had priority on purchases and tried to craft it to reduce HPI

But it's quite obvious that, what we knew all along, i.e. the way BTL ran out of control and ate itself, that the market is doing what it always had. Correcting without our interference.

Edited by pete.hpc

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Hmm can't help but feel a huge PR campaign is under way to get the government to pay landlords direct again. And as other posters have pointed out, it was changed because of fraudulent inflated claims by private landlords.

run by the BBC with it's own attendant BTL journo interest groups...

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Let the market be. It's sorting itself out as we speak.

indeed. poor BTLrs. are diddums.

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damn, that violin was so small i dropped it and lost it in the rug

ah, there it is

violin.gif

Edited by ɥsıɟpǝɥs

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The point is there hasn't been an even playing-field,

No tax relief for FTBs.

No tax relief for people who have moved up to their next houses either.

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My late father had a house rented to someone on benefit who never paid rent for 3 years

He was actually renting the property out to someone else and when my father refused to do repairs after the tenent and the subtenant fell out and the subtenant thrashed the house the council did the repairs (£30K in 1988) and sent my dad the bill.

The tenant said he would vacate the property if we "bought" it off him at market price!!

I kid you not

Most people on here don't want to hear that. My Dad was a Landlord too, houses he bought as wrecks and did up himself without using debt, then rented out. He did it all personally until he got fed up chasing rental arrears and went the direct to social route, that's when he had most trouble because he got really bad types in who made a mess.

Still, he had the last laugh on one who tried to physically take him on and he knocked him cold!

He sold the lot over a few years at decent prices and has been happy ever since.

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