Why do landlords not accept Housing Benefit? Some landlords may not accept tenants who are claiming benefits such as Housing Benefit. The reasons cited by some of them include delayed rental payments, high rent arrears and procedural delays for payments.
Full Answer
Can landlords refuse to accept housing benefit?
People often assume that landlords who refuse to accept housing benefit are operating a discriminatory policy, but this is not the case. There is no law that specifically says a private landlord cannot refuse a property to a tenant who will be claiming benefits.
Can a tenant receive less housing benefit than they pay in rent?
It’s common for a tenant to receive significantly less housing benefit than the tenant is expected to pay in rent.
Can landlords take people on benefits?
The National Landlords Association gave evidence to the House of Commons Works and Pensions Committee stating that “...in the last three years there has been a 50% drop in the number of landlords taking people who are on benefits.
Why don’t more landlords let to HB claimants?
Other factors cited as reasons for landlords’ reluctance to let to HB claimants include: uncertainly around the roll-out and implications of Universal Credit; the payment of Housing Benefit in arrears; restrictions in mortgage agreements and insurance requirements;
Does housing benefit go straight to the landlord?
For Housing Benefit to be paid directly to landlords/agents a Payment to Landlord or Agent Authorisation Form must be filled in and signed by both the tenant and the landlords or agent.
Can landlords refuse DSS UK?
No, they can't. In September 2020, housing benefit discrimination was ruled unlawful in a landmark court ruling. At the historic hearing at York County Court, 'no DSS' discrimination was declared unlawful, meaning letting agents and private landlords cannot refuse to accept tenants on this basis.
Is it illegal for landlords to not accept DSS?
No DSS adverts are unlawful. It's clear from the government and the courts that No DSS adverts are unlawful. Landlords and letting agents refusing applications from tenants claiming housing benefits risk compensation claims and damage to their reputation.
Does my landlord need to know I claim Universal Credit?
Universal Credit does not tell landlords when a tenant makes a claim, but will contact the landlord to get their bank details so housing cost payments can be made directly to the landlord. If landlords do not want to provide this information by phone, they can do so by requesting a direct payment to be set up.
What happens if you don't buy to let mortgage?
Then, if their buy to let mortgage prohibit DSS tenants, they can’t do anything else BUT refuse to take them. If they don’t, they risk increased interest payments or (worst case scenario) foreclosure by the mortgage company. THAT is not going to help the tenants either.
What is the duty of a letting agent?
Letting agents are of course just the businesses who manage the properties, and are duty-bound to get the best financial return for their customers – they would be negligent if they didn’t and could be vulnerable to compensation claims.
Can DSS tenants buy their own home?
Unfortunately though, it is currently haemorrhaging properties through right to buy which are not being replaced. As DSS tenants are clearly unable to buy their own home, this leaves them nowhere else to go but the private sector.
Why won't landlords let tenants on benefits?
The seven reasons why landlords won't let to tenants on benefits. Private sector landlords are accused of unfairly turning away households claiming housing benefit. So why do they refuse. The story that Newham council is looking into sending families in receipt of housing benefits to other parts of the country brought a lot ...
Why are landlords reluctant to let to tenants on LHA?
There are seven main reasons why landlords are often reluctant to let to tenants who are on LHA: 1. Payment in arrears. When letting to tenants who depend on the allowance, assuming the LHA can even be paid direct to the landlord ...
Is Newham Council sending housing benefits to other parts of the country?
The story that Newham council is looking into sending families in receipt of housing benefits to other parts of the country brought a lot of media interest to the issue of housing benefit payments. The controversial move to house tenants outside their communities is, however, unnecessary. There is much that could be done to improve the way ...
Is LHA paid in arrears?
Payment in arrears. When letting to tenants who depend on the allowance, assuming the LHA can even be paid direct to the landlord (which is not always the case following changes to the system in 2008), the payments are nearly always made in arrears.
The Problem
Why Private Landlords Won’T / Can’T Let to DSS Tenants
- It’s all very well for the author of the article on the Digs site to brush off the points made in David Lawrenson’s article, but this is not something landlords can do. For example – insurance. It is essential that landlords insure their properties – this is both for their benefit and for their tenants benefit. However, many landlords will understandably baulk at paying extra insurance premiums …
Why Should Private Landlords Act to Their Disadvantage?
- Why would any landlord voluntarily let to a tenant where there are likely to be all these problems, when there are plenty of non-DSS tenants around? To answer the comment from the Digs author I would say ‘why should they?”. They are private individuals, not charities. It’s not their job to house the homeless. And unless they are ‘stinking rich’ (which most small landlords are not) I don’t eve…
The Real Problem
- The real problem is that instead of social housing stock being increased, which is what is desperately needed, it is actually being reduced. Government seems to be hell bent on doing all it can to increase the ‘right to buy’ sell-off and make it difficult for Housing Associations and other social landlords to build any more. Thus completely ignoring the needs of DSS and other low-inc…
Possible Solutions
- It goes without saying that Local Authorities and Housing Associations should be encouraged to build and acquire property to let to benefit tenants. There are also other traditional and innovative solutions that could be looked at, such as 1. Compulsorily acquiring some of the many properties lying empty 2. Using unused areas of land to house the h...
Payment in Arrears
Deposits
- Tenants who are dependent on housing benefit often do not have a deposit they can hand over to the landlord to protect. And even where local government can help with a deposit, private landlords often tell us that council schemes are cumbersome, slow to administer and claim against in the event of damages caused by tenants.
Red Tape
- The administration of housing benefit can be slow and involve lots of form filling. Payments can start and stop without notice, and councils retain the right to try to claw back past payments from landlords if it later emerges that their tenant was claiming fraudulently – even if the landlord was unaware of a change in the tenant's circumstances.
Attitudes
- However wrongly, a minority of private sector landlords still believe that tenants claiming housing benefit are more likely miss rental payments or to not look after properties properly. We are working to change that perception.
Insurance Traps
- Buildings and contents insurance premiums are often higher where a landlord lets to people dependent on the Local Housing Allowance. Sometimes insurance is refused to landlords altogether. Central government must challenge the insurance industry on whether such inflated premiums are justified by claims records.
Buy-To-Let Mortgages
- Scandalously, some buy-to-let mortgage loan terms and conditions do not allow landlords to let to tenants on any kind of benefits or income support. Government should challenge the lenders on this.
Constant Change
- Finally, the array of changes to the housing benefit system, rates of payment and rules over the last four years has left landlords feeling confused. Rather than trying to understand something that keeps changing, many private landlords simply opt out instead. In London and other large cities where there is a large market of tenants who are not dependent on the allowance, growin…