Landlords have cited a number of reasons for refusing to rent to tenants in receipt of benefits, including:
- procedural and administrative delays with processing claims can lead to a build up of arrears
- housing benefit is paid 4 weekly and in arrears, while rent is generally demanded in advance and on a monthly basis –...
- many mortgage lenders impose conditions on the...
Full Answer
Can a private landlord refuse to accept housing benefit applications?
It is not unusual for private landlords and letting agents to advertise properties to let stating that they will not accept applications from people who rely on Housing Benefit (HB) to pay their rent. Despite the Department of Social Security not having existed since 2001, the phrase used in adverts is usually “No DSS”.
Are private landlords avoiding housing benefit lets in London?
In London and other large cities where there is a large market of tenants who are not dependent on the allowance, growing numbers of private landlords are simply avoiding housing benefit lets.
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;
Do private sector landlords think tenants claiming housing benefit Miss rental payments?
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.
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 a landlord 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.
Do I have to tell landlord I get Housing Benefit?
You only need to tell your landlord or letting agent you get Housing Benefit or Universal Credit if they ask. If you're turned down for a property because of any benefits you get, try speaking to the landlord or letting agent.
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.
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.
How many landlords refuse vouchers in Newark?
In Newark, 31% of landlords refused to accept vouchers, and in DC, 11% of landlords would not take vouchers. The study also found that landlords were more likely to reject vouchers in low-poverty neighborhoods compared with high-poverty areas. In each of the cities except DC, the denial rates were substantially higher in low-poverty neighborhoods.
Why are Section 8 vouchers so ironic?
It is ironic that Section 8 vouchers were designed to help people move to areas of opportunity. Instead, landlord rejection of this rental assistance has contributed to greater racial segregation and concentration of poverty. Section 8 vouchers offer landlords a number of benefits.
What is Section 8 voucher?
Section 8 vouchers offer landlords a number of benefits. Because the federal government pays 70% of the rent, landlords can count on timely payments. Because the tenant contribution is tied to their income, they are more likely to make their payments on time as well.
How long does it take to get a landlord's inspection?
But many landlords complain that the inspection process is slow and costs them money. It can take many weeks to get an inspection scheduled, and the unit may not be occupied for several more weeks after that if it fails the first inspection. Vacant units cost landlords money in lost rent.
Can landlords charge higher rents?
Especially in hot real estate markets, landlords may feel they can charge higher rents than they can get through the Section 8 program. Some landlords may find it more work to accept two rent payments for an apartment. Others may worry the government or tenant may not be timely with their payments.
Do landlords miss appointments with voucher holders?
In addition, landlords were more likely to miss appointments with voucher holders than the control testers without vouchers. There was also a slight bias towards the control testers with no vouchers. Landlords were more likely to tell them about, and invite them to visit, more units.
Can Section 8 be evicted?
However, Section 8 voucher holders are “incentivized” to follow the terms of their leases. If they violate the terms of their lease, not only can they be evicted, but they could also lose their voucher. One of the most common landlord issues is annual inspections.
Anti benefit claimant borrowing criteria
Most landlords own their properties on a mortgage. And most of those mortgages contain conditions which landlords need to follow when renting their properties.
A harsh and senseless ban
There are some 4.2 million benefit claimants in Britain. They all have to live somewhere and for many of them the only option will be the private rented sector.
When money is the measure
For banks and most other mortgage lenders, money is the measure of all things.
Who said no landlord should discriminate against tenants?
Reacting to the judgment, Chris Norris , policy director for the National Residential Landlords Association (NRLA) reportedly said: No landlord should discriminate against tenants because they are in receipt of benefits.
When did the LHA restrictions start?
Restrictions on the level of LHA paid to claimants were introduced by the Coalition Government in April 2011 – these changes led various housing bodies, including representative bodies of private landlords, to argue that HB claimants were being priced out of the market.
Can landlords refuse to let to benefit claimants?
There is no definitive information on the extent to which landlords have refused to let to benefit claimants. Reported survey evidence has suggested an increase in the practice in recent years. Given the increase in Universal Credit claims arising from the coronavirus (Covid-19) outbreak, in June 2020 Shelter raised the potential implications ...
Do private landlords accept DSS?
It is not unusual for private landlords and letting agents to advertise properties to let stating that they will not accept applications from people who rely on Housing Benefit (HB) to pay their rent. Despite the Department of Social Security not having existed since 2001, the phrase used in adverts is usually “No DSS”.
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…
The Problem
- I agree that it is disgraceful that so many decent hardworking people are unable to find somewhere to live, just because they need to claim benefits to support themselves. However, I think that the DIGS campaign is targeting the wrong people. There is a big difference between the private and the social sector. 1. The private sector is largely made up of ordinary people who ha…
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 understa...
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 homeless in cheaper and quickly erecte…