Charging Housing Benefit Recipients (And The Taxpeyer) More To Rent?

[CrashedOutAndBurned]

http://www.rightmove.co.uk/property-to-rent/property-19843632.html

Can you charge more to state-supported tenants like this?

£600

House + Co Property are pleased to offer this three bedroom property in Easton. The property comprises lounge, separate dining room, kitchen and downstairs bathroom, to the first floor there are three double bedrooms. Further benefits include gas central heating, partial double glazing and a rear garden. Offered with cooker and fridge. No Smokers, pets negotiable but no dogs, DSS negotiable at £650pcm with a guarantor. Available now.

[ingermany]

http://www.rightmove.co.uk/property-to-rent/property-19843632.html

Can you charge more to state-supported tenants like this?

Yes they can. Landlords know that the LHA supported tenant will pay as much as is demanded because in the end the money isn't theirs to pay.

[Lepista]

Landlords shouldn't really have any right to 'vet' any potential renters - in much the same way as pretty much any other providor of services.

There was a case recently, of the B&B that refused a room to a gay couple, that got alot of media attention and the B&B was shown t be acting outside of the law.

Why should a landlord have any discriminatory powers at all?

[jywerhyx]

Landlords shouldn't really have any right to 'vet' any potential renters - in much the same way as pretty much any other providor of services.

There was a case recently, of the B&B that refused a room to a gay couple, that got alot of media attention and the B&B was shown t be acting outside of the law.

Why should a landlord have any discriminatory powers at all?

But all providers of services have the right to 'vet' potential customers, and many of them do, if the transaction size is large enough for it to be worthwhile. You'll get a credit check even for taking out a new mobile phone contract, for example. There are some specific grounds on which a decision to deny service can't be based -- race, religion, sex, sexual orientation, disability -- and those apply to landlords just as much as they do to other service providers. Landlords have no special privileges or powers here.

[jywerhyx]

Landlords shouldn't really have any right to 'vet' any potential renters - in much the same way as pretty much any other providor of services.

There was a case recently, of the B&B that refused a room to a gay couple, that got alot of media attention and the B&B was shown t be acting outside of the law.

Why should a landlord have any discriminatory powers at all?

If it's unacceptable for landlords to discriminate between renters based on ability to pay the rent then it's presumably just as unacceptable for mortgage lenders to discriminate between borrowers based on ability to repay the mortgage, and all of the calls on this forum for tighter mortgage lending criteria, better income checks and lower income multiples are misguided at best.

[Georgia O'Keeffe]

If it's unacceptable for landlords to discriminate between renters based on ability to pay the rent then it's presumably just as unacceptable for mortgage lenders to discriminate between borrowers based on ability to repay the mortgage, and all of the calls on this forum for tighter mortgage lending criteria, better income checks and lower income multiples are misguided at best.

as far as im aware renters dont have the right in the uk to discriminate between mortgagees based on ability to pay, it seems a one way street over there

[Lepista]

But all providers of services have the right to 'vet' potential customers, and many of them do, if the transaction size is large enough for it to be worthwhile. You'll get a credit check even for taking out a new mobile phone contract, for example. There are some specific grounds on which a decision to deny service can't be based -- race, religion, sex, sexual orientation, disability -- and those apply to landlords just as much as they do to other service providers. Landlords have no special privileges or powers here.

But why? You pay in arrears for your ophone contract, where you can run up huge fees. You pay upfront for the rent, so no credit check is necessary.

Conversely, there should be better powers for the landlord to remove someone should they not pay.

[witsended]

The case of the B&B owners is a red herring,it was not about refusing a room to a gay couple,but about the definition of marriage.They are still free to refuse to let double rooms to unmarried couples gay or hetro,what they cannot do is state they let rooms to married couples and then decide what type of marrige they want the couple to have had to qualify for the room.

[moonriver]

But why? You pay upfront for the rent, so no credit check is necessary.

Exactly, it is not necessary in some cases, but for example, when I offered to pay 6 months rent up front to avoid the credit checks, the agent insisted they have to do them to check past credit history.

But I reckon this "credit check" is a nice little earner for the agents, mine charged £100 for this !

[moonriver]

http://www.rightmove.co.uk/property-to-rent/property-19843632.html

Can you charge more to state-supported tenants like this?

Not sure about the charging more, but is this guarantor thing for DSS more common now?

Looks like this one is looking for someone to possibly act as a guarantor for their granny/grandpa in an over 55's complex.

http://www.rightmove.co.uk/property-to-rent/property-35109950.html

"FROM £550 - £565 per calaner month.Over 55 complex in a sought after area of Porthcawl, in close proximity to the seafront, the accommodation offers a choice of 2 bed apartments, which can be either unfurnished or partly furnished, there is a communal laundry and common room and a concierge service with parking spaces to the rear. DSS considered with a suitable guarantor."

[CrashedOutAndBurned]

Still not sure why the taxpayer should cough up the extra 50 quid over the market rate.

Edited September 12, 2011 by CrashedOutAndBurned

[CrashConnoisseur]

Yes they can. Landlords know that the LHA supported tenant will pay as much as is demanded because in the end the money isn't theirs to pay.

It's not that. It's because most landlords and lettings agents won't accept HB claimants ("No DSS") so the choice of available properties is severely limited. Consequently such tenants are often in a weak negotiating position and open to exploitation by greedy landlords.

Prior to this April, HB claimants had an incentive to look for and negotiate rents below the Local Housing Allowance limit as they could keep up to £15 of any savings putting them in a similar position to someone paying from their own resources (when alternative properties were available). The coalition have now stopped this incentive. Even the government's own advisory committee can see that this is likely to push rents up...

'The Housing Benefit (Amendment) Regulations 2010 (S.I. No. 2010/2835). The Rent Officers (Housing Benefit Functions) 'The Housing Benefit (Amendment) Regulations 2010 (S.I. No. 2010/2835). The Rent Officers (Housing Benefit Functions) Amendment Order 2010 (S.I. No. 2010/2836). Report by the Social Security Advisory Committee under Section 174(1) of the Social Security Administration Act 1992 and the statement by the Secretary of State for Work and Pensions in accordance with Section 174(2) of that Act '

http://www.official-...80108509551.pdf

The Committee's Report

[...snip...]

Removing the £15 excess payment from 2011

4.23 We have also previously reported on a proposal to remove the £15 excess payment and recommended that it be retained. In response to our report the previous administration decided to delay its removal for a year. We supported the retention of £15 excess when we reported last year because we believe that it supported tenant choice and responsibility. We still believe that this underpinning policy is correct and that if the excess is removed it is likely that landlords will respond by simply raising their contractual rents to the level of the LHA rate (this may be even more likely when considered in conjunction with the proposed upper limits for LHA).

[...snip...]

Setting LHA rates at the 30th percentile of rents in each BRMA from October 2011

4.24 The problems faced by those claiming HB who are trying to access housing in the PRS are well-documented. Landlords' willingness to let to households claiming HB is limited in many areas, particularly since direct payment of the HB to the landlord was made exceptional under the LHA arrangements. Even with the LHA set currently at the median of the rents in each BRMA, not all properties are available to HB tenants and we are concerned that moving to a calculation based on the bottom 30% of rents, will mean more tenants chasing fewer 'affordable' tenancies and may have the effect of pushing up rents. We believe that this may have particularly damaging effect on the market for rooms in shared properties that are subject to the one bedroom shared accommodation rate for people aged under 25, an area of provision that is already under considerable pressure.

Edited September 12, 2011 by CrashConnoisseur

[CrashConnoisseur]

Not sure about the charging more, but is this guarantor thing for DSS more common now?

Yes, it's almost standard practice amongst letting agents; as is the use of the acronym "DSS" despite is being abolished over a decade ago.

[Self Employed Youth]

The case of the B&B owners is a red herring,it was not about refusing a room to a gay couple,but about the definition of marriage.They are still free to refuse to let double rooms to unmarried couples gay or hetro,what they cannot do is state they let rooms to married couples and then decide what type of marrige they want the couple to have had to qualify for the room.

Marriage and civil partnerships are two very different things.

One is a thousands of year old practice, the other is a pretend marriage for queers who feel they are somehow missing out on the fun of marriage.

[ingermany]

£22 for light bulb....

The taxpayer pays more than market value for everything.......................£22 for a 60p light bulb. That's what you get for ordering in bulk.

The taxpayer will always be ripped off, because the people who buy on the taxpayer's behalf are always spending other peoples' money. it's life.

[iamnumerate]

Landlords shouldn't really have any right to 'vet' any potential renters - in much the same way as pretty much any other providor of services.

There was a case recently, of the B&B that refused a room to a gay couple, that got alot of media attention and the B&B was shown t be acting outside of the law.

Why should a landlord have any discriminatory powers at all?

I agree. Just because I can't drive, car hire companies don't rent cars to me. Why is this allowed?

Edited September 12, 2011 by iamnumerate

[jammo]

Why £650 though? Why not £1600 per month? What has made them stop at the extra £50?

[shindigger]

Ive been renting in London for ten years, since STRing and then buying again in 2003 out of town.

My job dictates i am in London, i make a reasonable £35k,ish as a sole trader.

I cant afford to rent a decent home in London any more. By decent i mean somehwere that doesnt look like the Young Ones have just moved out. Rents are insane in London and nearby. Anyone who posts on here that they are saving money in the London area as a STRer is either lying, or sold for about £900k. Renting may work north of Watford Gap but not down here.

So i decided to hold my nose,and was shaping to buy a flat in Herts as it was cheaper than renting. By about 25%.

Yes i have a decent deposit.

I got gazumped by a BTLer.

Consequently, ive taken the decision to junk renting and attempting to live as a "Londoner", altogether and commute the 120 miles on the train twice a week.

By cutting down my hours i will still be better off, paying no rent or mortgage and forking out £540 for a season ticket per month.

I consider myself lucky to have the option to be quite honest.

Unless people are prepared to live 3 to a room, Londons going to have a recruitment problem very soon.

This is where mainstream politics is reaming working people HARD.

The only light relief is that i remember clearly the eye watering hike in rents right before the early 90s crash.

Hopefully this process will repeat itself soon.

Though i dont think there were so many people in a postion of power and influence so ball deep in debt and "portfolios" then.

There has been a tented enclave near the A10 in Enfield for a few years. This is an established campsite, but the clients are not holidaymakers, they are workers.

"Housed",either in tents or camper vans. I see the reports of men living in sheds shitting in a hole at the end of a garden....

Maybe we're not so far off South African TV crews dropping by for some cutting edge reportage...

We are turning in to a slave nation. There will be formerly "middle class" people living like this to make work pay soon.

Grim.

Edited September 12, 2011 by shindigger

[miko]

I got gazumped by a BTLer.

Grim.

Well people on here might not like it but I sell houses and flats on new build developments . I have noticed that the only people buying are those with help from

1. Bank of M&D ,

2. Those in good jobs

Both the above are few and far between.

3. BTLer's these fall into two camps those buying with cash or large deposits having been in property for many years . OR

4. BTLer's from abroad nearly always cash .

Group 4 are the biggest group of the lot far outstripping any other and im not talking about buying prime London one development I was on was in one of the most deprived parts of London. The young city workers priced out of renting in Docklands move out to these places for cheaper rentals in the same way people used to move out for cheaper places when they bought.

Why does our govenment let our priced out young become the rent slaves of the global rich ?

[shindigger]

Well people on here might not like it but I sell houses and flats on new build developments . I have noticed that the only people buying are those with help from

1. Bank of M&D ,

2. Those in good jobs

Both the above are few and far between.

3. BTLer's these fall into two camps those buying with cash or large deposits having been in property for many years . OR

4. BTLer's from abroad nearly always cash .

Group 4 are the biggest group of the lot far outstripping any other and im not talking about buying prime London one development I was on was in one of the most deprived parts of London. The young city workers priced out of renting in Docklands move out to these places for cheaper rentals in the same way people used to move out for cheaper places when they bought.

Why does our govenment let our priced out young become the rent slaves of the global rich ?

Thats exactly it mate.

Our governments have sold us out through devaluation and globalisation.

The cheaper labour is being found, we ARE being turned in to a slave nation before our eyes.

It sounds dramatic amd spectacular, but its more of a slow invisible grind.

Hey Tone, Hey Gord, Hey Dave, you can take me out now im at least par boiled.

Any longer and i get a bit chewy....

Time for a proper, targeted, smash up fest, if you ask me.

We're 3rd world.

[beccles]

That house needs bombing. literally.

[miko]

Time for a proper, targeted, smash up fest, if you ask me.

We're 3rd world.

That is why they clamped down so hard on the rioters , they know there is more and more simmering resentment under the surface and people are angry , not just the young , so they sent us all a message which was DON'T DARE STEP OUT OF LINE.

[shindigger]

That is why they clamped down so hard on the rioters , they know there is more and more simmering resentment under the surface and people are angry , not just the young , so they sent us all a message which was DON'T DARE STEP OUT OF LINE.

The heat is rising through the classes and the income brackets.

We are all being burned.

I thought i was doing ok, even post 2008. But the throttle has been opened.

Buckle up.

[jonb]

Why £650 though? Why not £1600 per month? What has made them stop at the extra £50?

I guess that is the LHA rate for the local area.

[Executive Sadman]

The shoddy condition of that 'space' just screams slumlord.