Direct payment of Universal Credit to landlords – Online system being developed

Direct payment of Universal Credit to landlords – Online system being developed

9:16 AM, 12th January 2019, About 5 years ago 31

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“One third of UC claimants in social rented housing have their rent paid directly to their landlord. But in the private sector, that number is only 5%.

“People in the private rented sector already face a far higher risk of losing their tenancy, and I know from talking to claimants and landlords that the current system isn’t working for some of them.

“So we need to make it easier for tenants in the private sector to find and keep a good home, by giving landlords greater certainty that their rent will be paid.

Therefore, I have asked the Department to build an online system for private landlords, so they can request (where necessary) for their tenant’s rent to be paid directly to them. And I will consider what else we can do, because I am determined to help keep people in their homes.”

The above is a section of  a speech given yesterday by Amber Rudd, Secretary of State for Work and Pensions, on changes to the roll out of Universal Credit. Click here to read the full speech on the government website.

“So here’s what’s going to change:

  • a more considered approach, so we can provide a better service for everyone moving onto Universal Credit from the old system
  • greater flexibility on payments, so the benefit fulfils its promise to adapt to individual needs and circumstances
  • more support for women: moving payments to the main carer, and making childcare payments more accessible
  • and every child born before April 2017 will now be supported by Universal Credit”

Under the current system 80% of landlords are reluctant to take the risk of renting to Universal Credit tenants with the average amount owed by Universal Credit tenants in rent arrears almost doubling in the last year from £1,600.88  to £2,390.19

Secretary of state for housing, communities and local government, James Brokenshire, said: “The measures announced today will ensure that landlords can receive rent from those on Universal Credit directly into their accounts. This important change will help strengthen the choices and opportunities available for those on Universal Credit to secure the homes they and their families need.”

NLA chief executive, Richard Lambert, responded to the planned changes: “Landlords have long supported the principles underlying Universal Credit, but have not been convinced by any of its practical implementations. Amber Rudd’s fresh approach is welcome, but needs to go much further if she wants Universal Credit to be truly effective and compassionate.

“Payments have fallen well behind rents across the country and will continue to do so while the freeze remains in place. In committing to end the freeze in 2020, all she’s saying is once the holes a bit deeper, I’ll stop digging.”

RLA Vice Chair, Chris Town, commented: “Our most recent research has shown that 61 per cent of landlords with tenants on Universal Credit have seen them go into rent arrears, up from 27 per cent in 2016.

“Improving, and speeding up, the process by which payments can be made directly to the landlord has been a central part of the RLA’s campaign on Universal Credit. Anything that helps this will give landlords much greater confidence in the system and ensure tenants have greater security in the knowledge that their rent payments will be met.”


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Comments

ahloughlin@gmail.com

11:28 AM, 12th January 2019, About 5 years ago

With present system only a foolish landlord would go down the HB route

Rod

12:20 PM, 12th January 2019, About 5 years ago

Once bitten, twice shy. Very true!

NW Landlord

12:36 PM, 12th January 2019, About 5 years ago

The issue I have had is tenants going on it in situ due to loosing jobs etc that’s where it becomes difficult

juliet bonnet

15:42 PM, 12th January 2019, About 5 years ago

I have had grief with 3 different councils, and in each case the rent being paid directly to me from the start 🙁 payment being stopped and/ or reduced) - ...either because the tenant's circumstances supposedly changed (no-one ever informed me in advance), or because it came to light that the tenant owed money to the council for their previous rental property.....there are clauses on the back of every rent statement I have received saying in effect that the council is entitled to claw back money from payments -even retrospectively after the tenant has left - if it comes to light that the tenant was not entitled to that amount! And the onus is always on the landlord to chase the tenant for any shortfall in payments! In their dreams!

dismayed landlord

16:40 PM, 12th January 2019, About 5 years ago

Damage is done. I'll never take H/B again. when Gravesham council came to me with an offer of ' we will pay the arrears providing you sign the tenant up to a new 6 month contract ' I had heard enough. Up until then I was still trying to make it work. not anymore.

Paul landlord

20:38 PM, 12th January 2019, About 5 years ago

Reply to the comment left by AJ at 12/01/2019 - 11:07
Yes thats right. The tenant leaves without landlords knowledge, is uncontactable and it becomes apparent they have left. The housing benefit without question reclaim the money from landlord- not being aware your tenant has done a runner doesnt cut it. In a similar vain the tenant can take up a new tenancy elsewhere giving you a notice date. However they run both tenancies for weeks without your knowledge as its convenient for them to 'do up' the new property (read badly decorate) the new residence whilst living in yours. They transfer across and then give the benefit a move date suiting the new tenancy. The council will not accept anything as evidence of them still occupying your property at that time- hands out 'pay us back the overpaid rent' and thats the first you know that the tenants have screwed you

Devon Landlord

20:47 PM, 12th January 2019, About 5 years ago

Comment to Gunga Din.
Whether it is £1600 or £2400 or £10. The money has been stolen from the landlord who has provided a commodity and not been paid for it. If someone walked out of M&S with a bag of goodies without paying, he or she would face a criminal charge. Why not when they owe oh so much more to the vulnerable landlord. Get real! And don't give me the answer that it is a contractual agreement which has to be resolved through the courts. When did that ever happen!!

Seething Landlord

13:32 PM, 14th January 2019, About 5 years ago

All the comments illustrate that the chickens have come home to roost. Once bitten, twice shy sums it up. For me the only possible arrangement that would persuade me to even consider taking another HB tenant would be for Government to act as guarantor for all obligations under the tenancy agreement, including full payment of rent in advance direct to the landlord and paying for damage to landlord's property, with no strings attached and no claw back provisions. If the tenant has caused damage, had a change of circumstances or has acted fraudulently let HMG assume the risk and chase him for recovery of amounts paid under the guarantee.

TheMaluka

13:36 PM, 14th January 2019, About 5 years ago

Reply to the comment left by Seething Landlord at 14/01/2019 - 13:32
Exactly my feelings.

dismayed landlord

13:52 PM, 14th January 2019, About 5 years ago

after what I went through I very much doubt i'd trust them again. It's done. their word is meaningless.

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