Gary Silver

Registered with Property118.com
Friday 7th November 2014


Latest Comments

Total Number of Property118 Comments: 2

Gary Silver

11:07 AM, 7th November 2014
About 6 years ago

Universal Credit / HB monies paid direct to tenants

Reply to the comment left by "Mick Roberts" at "06/11/2014 - 14:56":

Reasons why direct payment of housing costs are an extremely important option for both landlords and tenants :

Direct payments help reduce the personal debt of landlords and tenants.
Direct payments help to reduce the risk of a tenant losing their home.
Direct payments help to reduce the risk of landlords losing their investments.
More than 15% of local authority tenants and 13% of housing association tenants do not have a bank account; therefore would be unable to pay their rent by direct debit if this option was abolished.
The financial security that comes from direct payments has been critical for social landlords in securing private investment at highly competitive rates – which has maximised their capacity to deliver much needed affordable housing at good value to the taxpayer.
A research report by Policis in 2012 [ Optimising welfare reform outcomes for social tenants ] found that 86% of social tenants believe “strongly” that it is better for their Housing Benefit to be paid direct to the landlord so that they are secure in their home.
With 9 out of 10 tenants opting for rent to be paid direct to their landlord 92% stated that they would choose this option again, if given the choice.
After Fergus Wilson decided to evict all of his housing benefit tenants a few months ago, the government seem to be on the back foot defending yet another issue relating to their coveted Universal Credit flagship policy.

Although we won't be serving notice on our 'benefit' tenants just yet, as properties come free they will only be offered to students, working people or an LHA tenant with a guarantor for whom we can get some form of rent guarantee insurance.

The DWP have insisted all along (Ian Duncan Smith & Lord David Freud), that Universal Credit will be a bulk sum, comprising of many different benefits rolled into one. This in itself is actually a very good idea. Housing Benefit or LHA as its now known should be kept apart from this payment, or at least the landlord and tenant should be given the option of direct payments when the tenancy begins.

As landlords and agents we are NOT asking the government for more money but just asking for a split of payments between the claimant and the landlord. There WILL be a blatant misuse of tax payers money that will NOT get spent on what it was intended i.e. Housing Costs.

The vast majority of benefit tenants are vulnerable by definition and will not pass the money on as rent, but simply spend it on other purchases or luxuries. This has been proven to be the case when these often unfortunate people have so little to live on. You don't have to watch reality TV shows to understand the mentality of so many 'benefit st' tenants. Independent figures show that around 70% will fall into arrears and we fully agree with this.

It is not just landlords but also tenants, Citizens Advice Bureaus, Housing Associations, Landlord Associations and the man or woman in the street who knows this government idea is quite ludicrous and will not work.

The two politicians mentioned above argue that the recipients need to treat this benefit as a working wage and be responsible - Great, in an ideal world.

Many lenders will not lend to landlords who wish to expand their portfolios who rent to LHA or 'DSS' (historically named) tenants. Also NO rent guarantee insurance can be taken on these highest risk of tenants.

The PRS is being asked to handover an asset often worth in excess of £80,000 in return for the chance of getting their rent. No deposit is paid and quite often no rent in advance can be paid by the tenant.

Mass evictions and severe homelessness in NOT a threat but it will happen and cost the government in huge temporary accommodation costs, as well severe embarrassment.

You cannot create indepence from a state of dependence.... Read More

Gary Silver

13:05 PM, 25th February 2013
About 8 years ago

Major buy to let lender shuns benefits tenants

You really cant blame the lenders for not lending if the tenants are on LHA.
Quite simply in so many cases the rent will NOT be paid.
The new ruling within Universal Credit of paying the tenant directly is quite simply ludicrous. People in and out of the housing industry know that the rent will not be paid.

This simply MUST not be allowed to happen or mass homelessness will occur.

IDS has to come to his senses or MUST GO and make way for somebody who actually understands the situation... Read More