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Landlady left with £9,500 rent arrears by tenant on universal credit

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The Guardian: Landlady left with £9,500 rent arrears by tenant on universal credit

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A Croydon-based landlady has vowed never again to let her property “to anyone on universal credit” after the tenant installed by the council was switched to the new benefit and disappeared owing her around £9,500 in rent.

Amira Khan* says she feels let down, angry and “in debt to everyone” as a result of Croydon council being one of the first to adopt the government’s flagship universal credit scheme, whose rollout is proving controversial.

Until now, much of the criticism of the benefit has focused on tenants being evicted for rent arrears following delays in payments. But Khan’s case shines a light on the damage the rollout could inflict on landlords and their future willingness to accept tenants in receipt of it. This week, Lincolnshire property company GAP Property threatened all its tenants with eviction if they failed to pay their rent because of delays in universal credit payments. The scheme is about to rolled out in the area.

I am surprised she still wants to rent not sell up.

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3 minutes ago, Fairyland said:

The Guardian: Landlady left with £9,500 rent arrears by tenant on universal credit

I am surprised she still wants to rent not sell up.

Easy money becomes less easy. Tough.

You wont go into business renting ferraris to people on benefits. What makes you think renting 100k+ houses to doleys is any better - hb and all that.

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1 minute ago, Uncle_Kenny said:

Can I have some universal credit? Where do I sign up?

Yep you have to be of working age its just like retiring early get on board its easy everyone's entitled :)

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1 hour ago, winkie said:

Does universal credit work for anyone?....does the computer system work?......;)

Apparently it worked for the lady who disappeared with the rental money.

In the article, it says Croydon council is also suffering from falls in rent collection rates, from 91% to 59%, which to my mind is a striking.

Shelter suggests that landlords refusing to rent to UC claimants will be a problem ... but it sounds to me more like the beginning of a solution, as they will either then sell up, or realise that they have no choice but to accept the higher risks.

As has been said here many times, the houses will still exist; there may be some short term disruption, but longer term there will be more houses in the hands of owner occupiers, and landlording will become a less profitable, higher risk activity, which will translate into lower rents and better bargaining power for non UC claimants in the PRS.

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24 minutes ago, Uncle_Kenny said:

Can I have some universal credit? Where do I sign up?

Stop working or work in gig economy on low irregular hours work, spend any savings, try it out......careful what you wish for, stay mentally healthy, educated and fit.....keeps this country a 1st world country rather than a 3rd world country.......no credits many businesses would go under, plenty more sleeping on the streets......benefits in the most part get recycled back into the economy instantly......offshore money that is not required can be squirreled away for a rainy day, when it never rains is not ploughed back into the economy...it is taken out of the economy.;)

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4 minutes ago, Toast said:

Apparently it worked for the lady who disappeared with the rental money.

In the article, it says Croydon council is also suffering from falls in rent collection rates, from 91% to 59%, which to my mind is a striking.

Shelter suggests that landlords refusing to rent to UC claimants will be a problem ... but it sounds to me more like the beginning of a solution, as they will either then sell up, or realise that they have no choice but to accept the higher risks.

As has been said here many times, the houses will still exist; there may be some short term disruption, but longer term there will be more houses in the hands of owner occupiers, and landlording will become a less profitable, higher risk activity, which will translate into lower rents and better bargaining power for non UC claimants in the PRS.

Well tax payers money imo should be going to people that need it to live on....the rents should be brought down not escalated up.....else it is a tax that benefits landlords, not the claimants on low pay or the wealth of the country/the high and growing debt.;)

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2 hours ago, Fairyland said:

The Guardian: Landlady left with £9,500 rent arrears by tenant on universal credit

I am surprised she still wants to rent not sell up.

Do they want us to feel sorry for speculators trying to live off the tax payers...that's the truth of BTL and Housing Benefits. 

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21 minutes ago, winkie said:

.....keeps this country a 1st world country rather than a 3rd world country....... [...] ......offshore money that is not required can be squirreled away for a rainy day, when it never rains is not ploughed back into the economy...it is taken out of the economy.;)

I agree with this: benefits are needed, do actually get spent, and they could provide the start of the argument for a universal income. However, at the moment, they seem to create too many perverse incentives.

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16 minutes ago, winkie said:

Well tax payers money imo should be going to people that need it to live on....the rents should be brought down not escalated up.....[...] .;)

I think this is what will happen when (what was) housing benefit can no longer be paid directly to the landlords: people will abscond with rent money, but because the landlords have little pricing power*, that just translates into less money entering the rental sector. That will impact directly people renting to benefits claimants (hence their scaremongering about turning away UC recipients), but market forces should ensure the price changes spread more widely (they won't find anyone else to rent to unless they provide better terms).

*That is all predicated on housing supply remaining at its current levels (which it should, unless landlords burn their properties down), and also demand not increasing (which is more questionable given recent rates of immigration, but may be a fair approximation nonetheless; and anyway is a separate issue to the effects of HB -> UC).

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It's only £9500.  She'll have made far more than that in capital appreciation since she first took on the tennant in 2013, even after CGT. It's like buying some shares, watching them appreciate and then moaning that the dividend has been cut.

She could just sell the flat and invest in something more suitable for her risk profile.

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8 hours ago, Uncle_Kenny said:

Can I have some universal credit? Where do I sign up?

In my grans retirement block 3 of the 6 flats the occupants don’t even speak English, so best rip up your passport, learn to speak another language and pop into the council with your suitcase.. if your old and homeless you should get priority over British tax paying scum! 

Its The don’t pay in get everything out UK international retirement plan.. everyone is most welcome!

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13 hours ago, TheCountOfNowhere said:

Do they want us to feel sorry for speculators trying to live off the tax payers...that's the truth of BTL and Housing Benefits. 

They are 'the entitled'....so yes they not only want you to feel sorry for them, they expect it  

10 hours ago, Calcutta said:

Fantastic news. I only wish they'd given us a picture of her so I could knock one out over it.

Nice.....? ?

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16 hours ago, Toast said:

*That is all predicated on housing supply remaining at its current levels (which it should, unless landlords burn their properties down), and also demand not increasing (which is more questionable given recent rates of immigration, but may be a fair approximation nonetheless; and anyway is a separate issue to the effects of HB -> UC).

It should remain at current levels but alas we've got vandals wanting to build enough for a large city every year.

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On 11/18/2017 at 6:20 PM, Toast said:

I agree with this: benefits are needed, do actually get spent, and they could provide the start of the argument for a universal income. However, at the moment, they seem to create too many perverse incentives.

Personally I don't think it is possible to run a benefit system which provides to those in need without creating perverse incentives.

The solution on  a trial level at first, run it at local level where workfare would be a lot easier to run.

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On 11/19/2017 at 2:12 AM, macca13 said:

In my grans retirement block 3 of the 6 flats the occupants don’t even speak English, so best rip up your passport, learn to speak another language and pop into the council with your suitcase.. if your old and homeless you should get priority over British tax paying scum! 

Its The don’t pay in get everything out UK international retirement plan.. everyone is most welcome!

How is that possible?

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18 minutes ago, iamnumerate said:

A) Why do councils want to give money to foreigners

B') How can we prove this?

C) How can we stop it?

A) It keeps coucnil workers in jobs. When people work and sort themselves out theres limited clients for the horde of social workers and housing oficers to do. So they import wor.

Then, as the poeple imported get jobs at the ocuncil, they start giving favours to fmaily/tribe/backhanders

See Towerr Hamlets and most central London councils.

B ) Look at the election role.  Or, simply, the Greenfell Tower list of tenants.

c ) Any migrant to the UK most be  self supporting and earn more than 30k. Deport any migrant who cannot support themselves.

 

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To me, not paying the rent direct to the landlord is just corruption  .. they really cannot be that stupid.

Surely all rents should be paid direct via BACS and that way all monies are known and traceable, with the data shared with Benefits Agency, HMRC & Land Registry etc.

No benefit claimant would be able rent out a home they haven't declared, while living in one provided by the state, all income taxes due would be accounted for and so on.

But of course I expect the benefit system to be for those in need; instead it just a way for all participants to fleece the tax payer (e.g. points A and B above)

 

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36 minutes ago, spyguy said:

c ) Any migrant to the UK most be  self supporting and earn more than 30k. Deport any migrant who cannot support themselves.

I'd add "and find somewhere to build a new house to accommodate their contribution to population growth, where there won't be any objections at all." Can't find somewhere with no objections then clear off.

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