‘No DSS’ adverts in the private rented sector

by Property 118

16:06 PM, 4th March 2019
About 5 months ago

‘No DSS’ adverts in the private rented sector

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‘No DSS’ adverts in the private rented sector

Responding to an announcement from the Government that it plans to work with stakeholders to address the issue of ‘No DSS’ adverts in the private rented sector, John Stewart, Policy Manager for the Residential Landlords Association said:

“Landlords should not refuse someone solely because they are on benefits, and should consider prospective tenants on a case by case basis. But with growing numbers of benefit claimants now reliant on the private rented sector we need to do more to give tenants and landlords greater confidence in the benefits system.

“This means giving all tenants the right to choose if they want to have the housing element of Universal Credit paid directly to their landlord, working with bank lenders to remove mortgage terms that prevent landlords renting to benefit claimants and ending the Local Housing Allowance freeze which has meant benefits bear little resemblance to rents.”

RLA research has found that the average amount owed by Universal Credit tenants in rent arrears increased by half from just over £1,600 in 2017 to almost £2,400 in 2018.

Around two thirds of the largest buy-to-let mortgage lenders do not allow landlords to rent property to tenants receiving housing benefit.

However, recently the Natwest Bank has bowed to pressure and lifted its criteria restriction prohibiting DSS tenants to rent.

Research by Manchester Metropolitan University for the RLA has found that 53 per cent of landlords reported that the gap between the Local Housing Allowance and local market rent was more than £50 a month. Almost 25% said the gap was over £100 a month.



Comments

Mandy Thomson

17:47 PM, 13th March 2019
About 4 months ago

There is one argument FOR a level playing field between tenants not on HB and those who are - when I recently let a flat I made it available to all prospective tenants, "DSS" and non "DSS" alike.

I got many enquiries from people on HB who clearly didn't like the property but were looking at it because they were not excluded - that was their main priority. Many were clearly hoping I would make drastic changes once they moved in - a lose/lose situation for both them as tenant and me as landlord.

In the end the property went to a really nice couple who are not on HB who really love the flat.

Mandy Thomson

17:51 PM, 13th March 2019
About 4 months ago

It would also help both landlords and tenants if HB could be pre-agreed in principal in the same way mortgages are. Oh silly me; it's difficult enough to get a claim established even after the tenant has moved in.... I know someone (not one of my tenants) who has fallen foul of this recently when he was awarded considerably less HB than he was expecting AFTER he had already moved into his new property and surrendered his previous tenancy. Not good.

Dylan Morris

9:17 AM, 20th March 2019
About 4 months ago

Ok so there will be a restriction so you cannot exclude DSS tenants on your advertisement. Presumably if such applicant applies to me I can simply say sorry I don’t accept DSS tenants ? ? I’ll have complied fully by not putting a restriction in my advert ??

Paul Shears

9:46 AM, 20th March 2019
About 4 months ago

Reply to the comment left by Dylan Morris at 20/03/2019 - 09:17
see my previous identical comment two weeks ago.

Dylan Morris

9:54 AM, 20th March 2019
About 4 months ago

Reply to the comment left by Paul Shears at 20/03/2019 - 09:46
Thanks Paul wasn’t aware of you earlier comment. It really is all getting to be a nonsense.
(On another slightly different but equally insane matter from 1st June when the tenant fees ban comes into play, we’ll only be able to take a holding deposit of one week maximum rent when a tenant views and puts in an application).

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