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13:36 PM, 14th October 2020, About 4 years ago 74
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Those who believe that Government is not aware of the issues facing landlords in the PRS may be surprised by the detailed analysis in the Briefing Paper published on 13th October by the House of Commons library.
The summary is quoted below but I recommend reading the whole report, which can be downloaded if you click here
“Discriminating against Housing Benefit claimants?
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”. This has raised the question of whether such restrictions amount to unlawful discrimination. Although unlikely to amount to direct discrimination, as income and employment status are not protected characteristics under the Equality Act 2010, it has long been argued that it could amount to indirect discrimination in some cases.
Findings of unlawful discrimination 2020
In what was described as a ‘landmark’ case, District Judge Victoria Elizabeth Mark sitting in York County Court, considered the case of a disabled single parent who had an application for private rented housing refused by a letting agent based on her receipt of Housing Benefit. In a judgment dated 2 July 2020, which was widely reported in the media on 14 July 2020, she held that the letting agent was in breach of the Equality Act 2010. The judgment declared that:
The Defendant’s former policy of rejecting tenancy applications because the applicant is in receipt of Housing Benefit was unlawfully indirectly discriminatory on the grounds of sex and disability contrary to sections 19 and 29 of the Equality Act 2010.
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. Every tenant’s circumstance is different, and so they should be treated on a case by case basis based on their ability to sustain a tenancy.
This was followed by a case considered in Birmingham County Court in which judgment was handed down on 8 September 2020. Circuit Judge and Acting Designated Civil Judge for Birmingham (now High Court Judge), Mary Stacey, held that the letting agency, Paul Carr, had operated a blanket ‘No DSS’ policy which amounted to unlawful indirect discrimination against disabled people.
Why are landlords reluctant to let to Housing Benefit claimants?
Historically, landlords were reluctant to let to HB claimants because of delays in processing HB applications, but since April 2008 a key factor influencing landlords has been the introduction of the Local Housing Allowance and the requirement that this, except in certain specified circumstances, is paid to claimants rather than landlords. 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.
Further restrictions were introduced; for example, LHA rates were frozen with effect from April 2016 for four years. This added to landlords’ concerns about the gap between LHA and market rent levels. Evidence of disparities between actual rent levels and LHA rates payable submitted to the Communities and Local Government Select Committee’s inquiry into homelessness (2016) led the Committee to recommend that “Local Housing Allowances levels should also be reviewed so that they more closely reflect market rents.”
At the start of the fourth year of the benefit freeze (2019/20), analysis conducted by Shelter noted that the LHA rates for a two-bedroom home did not cover the full rent charged in 97% of Broad Rental Market Areas in England.
Other factors cited as reasons for landlords’ reluctance to let to HB claimants include:
The extent of the issue?
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 of “No DSS” blanket bans for tenants:
Given the huge rise in the numbers of people receiving housing benefit and what we know about rates of discrimination, we’re concerned that there will be a significant increase in the numbers of people experiencing housing benefit discrimination in the coming months.
As people in existing tenancies tell their landlords they’ve applied for Universal Credit, and those who need to move home begin the search for somewhere to live, renters who are now relying on housing benefit to keep their head above water will be coming up against discrimination.
The likely spike in evictions in the months that follow the lifting of the evictions ban has the potential to exacerbate this further. When the ban is lifted, there will be an upsurge in the number of renters who need to look for a new home. A significant proportion of private renters who may be evicted will likely be receiving housing benefit, especially considering the huge rise in people applying for Universal Credit during the coronavirus outbreak, and so will be met by ‘No DSS’ policies.
In the wake of the finding of indirect discrimination in July 2020, it seems likely that instances of blanket ‘No DSS’ adverts will disappear. However, affordability checks based on a tenant’s individual circumstances will still be possible.
The issue had attracted an increased level of attention in recent years. On 21 February 2019 the Work and Pensions Select Committee launched an inquiry into No DSS: discrimination against benefit claimants in the housing sector – the inquiry had not concluded before the dissolution of Parliament for the 2019 General Election. On 1 March 2019 the then Minister, Heather Wheeler, said the Government was calling for “the end of housing advertisements which specify ‘No DSS’ tenants.” ”
David
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Old Mrs Landlord
10:39 AM, 19th October 2020, About 4 years ago
Reply to the comment left by Seething Landlord at 18/10/2020 - 18:57
I echo the sentiments expressed by Seething Landlord regarding the educational posts on here by various landlords experienced in letting to tenants on benefits, as well as this briefing paper illustrating how the reasons for PRS landlords' reluctance to let to benefits claimants are well understood in government circles.
Unfortunately it has become obvious over the years that Housing is very much a subsidiary department of government and its interests will always be overridden by those of the Treasury. Housing ministers have been chopped and changed with ridiculous frequency, making it impossible for them to get to grips with all the complexities, let alone get any meaningful measures implemented. For most of the last decade austerity has been the governing mantra. The years of Labour government saw perverse incentives for the low-waged to either give up work and claim benefits which give them a similar standard of living or work the minimum hours to entitle them to tax credits and open the door to many other free or subsidised allowances, arguably creating a benefits culture. When the Conservatives came in they set about dealing with this perceived unfairness and the financial crash added impetus to their drive to get people off benefits and into productive work creating, whether intentionally or coincidentally, a hostile environment for claimants. Now we have a pandemic which has changed everything again and the prospect of tens of thousands of families being evicted from PRS homes and thrown upon cash-strapped LAs with nowhere to house them clearly panicked government into simply outlawing evictions. Even had the longstanding shortage of social housing been addressed before now, there still would have been insufficient accommodation. The sensible solution of temporarily subsidising private rents to landlords where necessary to keep tenants in their homes was apparently not considered by the money printing politicians who have been so profligate in other areas.
Seething Landlord
11:48 AM, 19th October 2020, About 4 years ago
Reply to the comment left by Old Mrs Landlord at 19/10/2020 - 10:39Whilst rapid turnover of housing ministers is a bit disconcerting we tend to forget that to a large extent they are figureheads and that the detail work and formulation of policy options is carried out by civil servants working behind the scenes and providing continuity.
One of the reasons why so many lawyers, barristers in particular, are appointed as government ministers is that they are accustomed to quickly mastering a brief and presenting it as though they were the world's experts in that field. Just as a barrister relies upon the solicitor who in turn relies upon a variety of witnesses and experts in preparation of the brief, government ministers rely on civil servants.
On your last point it would not surprise me if we soon see tenant loans introduced following the same pattern as already exists in Wales as long as that policy does not end in an almighty car crash.
Jonathan Clarke
12:21 PM, 19th October 2020, About 4 years ago
Reply to the comment left by Old Mrs Landlord at 19/10/2020 - 10:39
``The sensible solution of temporarily subsidising private rents to landlords where necessary to keep tenants in their homes was apparently not considered .........``
This subsidising of rents has happened in my area for a long time now . What the procedure is . Tenant falls behind . I write to council and say i am going to evict but would be happy for them to stay on on the proviso that the arrears are paid off and DHP awarded for any shortfall in their entitlement going forward. They say ok then get the tenant to apply for DHP and for me to produce a rent statement .
This has resulted in me receiving £1000`s and £1000`s in back rent. Keeps the tenants safe and saves the stress and costs of court and upheaval of their kids etc . , Keeps me happy And it also saves the taxpayer loads as i think it costs the taxpayer about 3 times as much to house in TA than in the PRS .
Old Mrs Landlord
12:35 PM, 19th October 2020, About 4 years ago
Reply to the comment left by Jonathan Clarke at 19/10/2020 - 12:21You have mentioned this before Jonathan and the important words in your post are "in my area". Lucky you! In contrast, in our area the LA offers a £500 bribe (of course they don't use that term) to take on a tenant from their homeless list. I expect some landlords might be tempted to evict their long-term benefit tenants whose rents haven't kept pace with the market to replace them with others from the list at possibly a higher rate of rent plus £500 for each individual tenant. The South East seems to have more extreme problems and more public money thrown at ameliorating them.
Jonathan Clarke
12:57 PM, 19th October 2020, About 4 years ago
Reply to the comment left by Old Mrs Landlord at 19/10/2020 - 12:35
Yes you are right it seems to be a patchy response country wide which in a way is a shame . I find though that on occasions council operatives who are relatively new to the role are simply unaware though of the various funding pots potentially available to them ( I have used 5 different pots on occasions) So I would say if one gets rejected its worth double checking with their managers and / or other associated departments.
I`ve used before
Discretionary Housing Payment Fund
Local Welfare Provision Funds
Homelessness Prevention Funds
Social Services Funds
Homeless Charity Funds
Not so long ago one operative admitted to me that their departments simply don`t talk to each other even if they work in the next room in the same building . They each have a very narrow focus and remit and are seemingly incapable of looking at holistic solutions to the homelessness problem .
Old Mrs Landlord
13:52 PM, 19th October 2020, About 4 years ago
Reply to the comment left by Jonathan Clarke at 19/10/2020 - 12:57
More useful information for those of us with tenants who might lose their jobs and have to claim benefits in the coming months - which could be almost any of us. Thank you.
12:25 PM, 29th October 2020, About 4 years ago
For me I treat it as any other business would. I've previously let to HB and UC claimants and have a history of not receiving full payment. Effectively as any business would I've placed these customers (ie the Governement) on Hold until they've paid up.
Surely I'm allowed to do this?
Also my local council provides a deposit bond for certain people. It sounds great until you try and claim and they dispute very single photo, every receipt, evry quote whilst refusing to get off their asses and come and see for themselves. So to summarise I have tried these and found again that I end up being owed money by the council. As a result I now choose not to accept worthless bits of paper instead of deposits. Most of these people would be on benefits. Can I choose to do this?
12:53 PM, 29th October 2020, About 4 years ago
Reply to the comment left by Tessa Shepperson at 14/10/2020 - 17:54
What is this country coming to where someone can be on benefits for 10 years? maybe going off topic now but I thought welfare was meant to be a temporary helping hand, not a permanent way of life. In my humble opinion anyone relying on benefits for decades would not be a suitable, responsible, honest enough candidate to be trusted with safekeeping of £100,000 asset.
And I'm not discriminating against long term disabled people. Surely It's discriminatory to assume that they can't work and fend for themselves because of their disability. After all half the country is currently working from home - it's possible.
Jonathan Clarke
17:19 PM, 29th October 2020, About 4 years ago
Reply to the comment left by Roanch 21 at 29/10/2020 - 12:25Its an interesting legal point you raise and has merit in my view
You are not wanting to discriminate against the HB claimant themselves . They may be great people and do everything by the book and submit their claim and the associated paperwork correctly and promptly . But then its out of then hands and the lame `business` owner takes over and then messes it all up time and time again because their administration systems are so poor.
So you only want to legitimately discriminate against the HB claimant`s paymaster and their servants and you can cite ample previous personal experience of their ineptitude .
I`m sure a good lawyer could argue that view
An HB Claimant can be just as good and worthy applicants as their working counterparts .....but they are not the problem ... its the government / councils/ DWP who fall well short of the mark on so many criteria so therefore you reserve the right to reject them on that basis
.
Mick Roberts
7:53 AM, 30th October 2020, About 4 years ago
Well this week, I've had 3 complaints started with UC.
And a 4th I will solve with the local Job Centre.
Reasons again why we can and are having to refuse to HB claimants.
Extracts of some of the complaints below (from me & tenants), enough to put off anyone taking UC:
Paying tenant when already arrears & only moved house with me-He's been with me 17 years.
He said Don't pay me, I'm gonna spend it.
UC have got record from last house, in arrears, same tenant, same landlord:
I have asked u on my journal to not pay me the Housing Element direct-Proof enclosed.
I took in rent proof letter to Job Centre which clearly shows arrears.
DWP have already apologised to my Landlord for paying me after previous arrears-on the above Ref.
Why did u not carry on paying Landlord?
I am the same tenant same landlord.
I have just moved into another one of my Landlords houses.
Are we saying when a tenant moves house, all their debts are quashed? All their rent arrears are wiped out? By who?
Why did UC start paying me again and especially since I took rent proof arrears into Job Centre which UC have on system.
UC keep saying a tenant can ask for UC to pay the Landlord direct, I begged the Job Centre and journal to pay Landlord direct. I had arrears, UC had the rent proof arrears letter, u couldn't get a more conclusive proof to pay Landlord, yet U didn't. What does it take for tenant to get direct payment?
Girl claiming UC, working 40 hours pw, was on HB:
So she claimed UC approx Sep (I've jotted these dates down while talking to her). Your man XXXX is asking her for NEW tenancy.
He rang her 25 Sep to confirm her rent & said he will ring her back, he din't ring back.
She says she's had no Housing Element HE now for 2 months. She now wants to move cause she can't afford the rent. Am I losing a good tenant cause of XXXX ineptitude? It was only 2 weeks ago that XXXX screwed a tenants Housing Element claim up.
He's then asking why the rent is different she is paying now to what was on original tenancy. So XXXX Who's paying for this new tenancy that the Letting Agent is going to write up?
How many more times, WE DON'T NEED NEW TENANCIES. XXXX who we met at your office from Stage 1 took this to top level & said U right Mick, we don't need new tenancy just to claim UC.
16 Oct she's had no HE. XXXX said he would backdate.
XXXX has now asked for rent statement which my Letting agent has provided. XXXX (after asking for this) has decided the rent statement is no good & he's not accepting it, as the amount XX is paying £623 is different to the amount XX was paying when she moved in. Gees HOW MANY MORE TIMES, does staff at Bulwell JC think that if someone moved in 20 years ago, they'd be paying the same rent now?
Tell XXXX to think How can we pay this claim. Not How can we wiggle out paying this claim & making this girls life as hard as possible.
XXXX TODAY has still not processed her HE.
Her next payment date is 16 Nov. Can we please sort it by then & pay all her backdating.
Where are these people being trained? Is XXXX new? Tell him he is playing with people's lives.
Now excuse me if there is two sides to the story, but it's the same old thing, UC one day will be forced to ask the Landlord for rent proof. This would have solved all this. UC are making vulnerable people's lives very hard.
U can see what rent she's paying out her bank, she's provided Letting agent statement. U couldn't get much more squeaky clean proof. And guess what, u got Mr Mick Roberts Landlord here, biggest HB landlord in Nottingham, it's not hard to get hold of me, get him to pick the phone up, 4.2 seconds & ask me.
UC not telling me or tenant when what how much 3rd party payment deductions are (they don't know cause they find it as hard as us to talk to them):
I have asked u on my journal to explain about how when where what date etc. my 3rd party payment deductions are going.
UC aren’t replying properly in my opinion & asking me to ask my Landlord, when it is my money & I want to know.
My claim is with UC, I am asking UC a question, they should be able to answer me instead of pointing me to an external agency.
I'd like to know for my own records please.
If it's me that's paying it, I'd like to know when it leaves me and when he gets it. He could lie could he not and say he's not received it? Any other organisation that pays something out someone's budget/income tells the payer when what how much when the next one etc.
If I'm on Universal Credit and I or u or we are paying, I'd like u tell me. I don't want me or the Landlord contacting an external team. Are you telling me you can't contact this external team?
Because my Landlord too and my friends Landlord has never been able to get any sense out this external 3rd party payments team.
So if u can contact them please and find out when cause my Landlord hasn't received and he could be lying.
Why hasn't he received if he received my Housing Element?
Surely it would make sense to pay it same time as my Housing Element?
26 Oct 2020
Can I ask how I'm supposed to budget then, if u don't know, nor can tell me when this £40.99 goes out?
If you don't have access to this, then who does?
My Landlord says he believes these are paid every 4 weeks, not calendar monthly, the same as my Housing Element?
Why isn't it paid with my HE?