Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
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The Work and Pensions Commons select committee have issued a statement titled “Government must address housing ‘blacklist’ created by lenders’ no DSS policy.”
The Committee published correspondence with Ross McEwan, CEO of RBS, on concerns about restrictions on mortgage lending to landlords whose tenants are in receipt of housing benefit and Universal Credit.
Natwest refused a re-mortgage and threatened calling in the existing mortgage because the landlord was renting the property to a tenant in receipt of housing benefit. The landlord was told that she would have to evict her tenant, a vulnerable elderly lady, or pay the early repayment charges and forego the mortgage as it was the bank’s policy not to allow rentals to a ‘DSS claimant’.
Chair of the Work and Pensions Committee Frank Field MP, said: “The Government claims its welfare reforms are intended to drive employment, but allowing banks to operate a “no DSS” policy is a return to the wicked old days of housing discrimination, with claimants effectively blacklisted for housing and at risk of being senselessly evicted for no greater crime than receiving housing benefit. NatWest is now taking a look at its policy, and other mortgage lenders will no doubt follow suit. If the change we need to protect people is not forthcoming voluntarily, we may need to look to regulation.”
Landlords on Property118 have said all along that one of the barriers to offering longer term tenancies and tenancies to Housing Benefit tenants is the contravention of lenders’ mortgage terms and conditions banning letting to tenants in receipt of housing benefits.
Click here to read the full statement.
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