Local Authority want to put the local housing allowance rate on the AST?
Hello Everyone, I am in the process of letting my property through a council.
The rent is higher than the local housing allowance rate so the Local Authority (LA) said they will be covering the shortfall.
However, the LA want to put the local housing allowance rate on the AST as the rent rather than the actual contractual rent that I have agreed with them. I am pretty certain this is not correct.
I also fear this may cause issues for me and even the tenant in the future.
Are the Local Authority correct to do this? I don’t understand why we can’t just put the actual rent on the AST.
This maybe a stupid question but I have never heard of this before.
Many Thanks
Jenni
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Member Since October 2021 - Comments: 62
2:28 PM, 23rd January 2025, About 1 year ago
Add another 10k onto mine. Never again, ever !
and I find it this morning she’s still driving around with no licence after being convicted of hit and run.
And 2 local authorities are chasing with debt collectors yet same LA, different department, they keep bloody paying her ( benefit for rent and council tax).
FFS, they are literally giving tax payer money away.
And now she’s expecting her 4th child.
My poor local authority needs more money to help, £65 bin collection charge being introduced due to pressures on budget… which they say is mostly social housing costs.. ….
Honestly get a grip !
Member Since January 2016 - Comments: 235
6:49 PM, 23rd January 2025, About 1 year ago
Jenni. As others have advised, just stop! Now! The local authority hates you and this experience will scar you for life.
If you are an inexperienced landlord and are doing this as a result of your uncertainty, please just leave the property empty, do some research amongst local letting agents and choose one that you are comfortable with … or even better get a referral from another landlord. Get a private tenant, get a guarantor, and let the agent manage it for you.
Member Since January 2015 - Comments: 1435 - Articles: 1
8:55 AM, 25th January 2025, About 1 year ago
Run,
If asking basic contractual questions, and yes I fully understand that you have to learn and not being harsh, is this the business that you should be in.
The rent required is the rent required and the tenant will be the one whose is eligible or not for housing benefit/UC at LA Housing rate. Have you in writing that the Council will cover the top up?
Do NOT agree to any clause being inserted in the TA that refers to the LA Housing Allowance.
Is the LA paying a deposit or giving a Bond? What are the Ts&Cs ? Some sneak in the deposit/Bond is not payable unless you produce receipts for the replacements/works done.
Member Since December 2022 - Comments: 82
12:16 PM, 25th January 2025, About 1 year ago
Jenni –
PLEASE take the advice to run away from this. Your question shows that you are out of your depth. I’m not being rude, just brutally honest. Over the years I have read hundreds of forum posts by people who have entered into this business without understanding it and it always, always, always ends in tears.
In the current circumstances I would say if you currently have vacant possession just sell, pay the CGT, and do something else with the money. The lettings business is probably going to end in tears for everyone who stays in it.
Michael