Tuesday, Mar 12, 2013

Govt to help increase voids in BTL

BBC News: Tenants' rent arrears soar in pilot benefit scheme

"Rent arrears among tenants on a government pilot project that pays housing benefit directly to recipients have seen a big increase, figures show... Paying housing benefit directly to recipients, rather than their landlords, will form a key part of the planned new Universal Credit... Figures obtained by BBC News show that arrears among tenants of Wakefield and District Housing in West Yorkshire have increased from an average of 2% to 11% on the pilot projects... One tenant failing to cope is Margaret Tonks, a single mother from Broseley, Shropshire... 'By them paying the money directly to me it created temptation to use it for other things which has resulted in me being in arrears and possibly being evicted.'"

Posted by dude @ 05:14 PM (1839 views)
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5 Comments

1. khards said...

Ha! Tenants are paying what they think the service they receive is worth.

7 years ago I lived in a bedsit and paid 60pw because it was the cheapest option. The landlord certainly did not provide 60/wk worth of services in his rundown Victorian terrace house.

Tuesday, March 12, 2013 08:18PM Report Comment
 

2. libertas said...

What this will cause, is less landlords willing to rent to DSS tenants. Cue further projects to provide expensive B&B spaces for folk who can't find real homes.

Tuesday, March 12, 2013 11:17PM Report Comment
 

3. vinrouge said...

The government / DSS could demand a discount of say 33% or 50% to pay the LL direct.

The taxpayer wins.

Wednesday, March 13, 2013 07:47AM Report Comment
 

4. Lars Bussholm said...

'By them paying the money directly to me it created temptation to use it for other things'. Who'd have thought it, eh? Those chaps at the DSS have had it hard. Years of wondering where the sun goes at night, and now this.

Wednesday, March 13, 2013 10:56AM Report Comment
 

5. libertas said...

Well, this "scheme" re-distributes wealth from sensible savers and earners to those incapable of getting their lives together, and to boot, encourages folk who should not get into debt, into debt. No kidding it will result in higher defaults. Did we not learn anything from similar schemes in America to help fund the sub-prime crisis?!

Wednesday, March 13, 2013 12:10PM Report Comment
 

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