Kent based Landlord Mr Fergus Wilson reported to the press that he has served section 21 notices to more than 200 tenants on housing benefits asking them to leave after six months.
Mr Wilson has a portfolio of over 1000 properties and has decided not to rent in the future to tenants claiming housing benefit preferring instead tenants from Eastern Europe who he says are more likely to pay their rent on time.
Mr Wilson said, “this decision is only down to money it has nothing to do with the personalities involved.
“When it comes to money over half of people on benefits were defaulting on their rent, and when it comes to people who are working, we’ve not had one single person default on one single penny. You can appreciate why. Rents are going up in line with the price of houses and housing benefit levels are dropping at the same time.
“Tenants from eastern Europe, places like Poland, have been here a number of years now and have built up a good enough credit rating to rent privately. We won’t see the impact of more recent migration for years to come, but people on benefits are having to compete with them.
“My message to people is get yourself a job, and you will get yourself a house.”
Mr Wilson also added “The problem is that you have a finite number of houses, but more people wanting to rent them than places are available. With that pressure, what tends to give is the poorest people at the bottom of the economic pile.
“We are going to be in a position in the next 20 years where it becomes more and more difficult for people to find housing, and no one seems to have an answer. You tell people in a place like Ashford that they need more housing and they’re likely to lynch you they are sick of being built on, but it’s a fact.”
The NLA has also released a statement regarding this story in the press:
Chief Executive Officer, Richard Lambert said, “our current research shows we’re seeing more and more landlords moving away from renting to tenants claiming benefits.
“It was widely assumed that rent rises were fueled by housing benefit, and that if benefit rates were reduced, rents would fall back to meet them. That’s been shown to be a completely false assumption. There are many wider factors affecting rent levels, principally the availability of properties and the number of people looking to rent.
“As the Welfare Reform agenda has progressed over the past three years, benefit levels haven’t kept up with rents, meaning it’s a greater risk for landlords renting to tenants who rely on benefits, which is why they are looking more and more to working tenants who don’t tend to fall into arrears that easily. The fact is that there are many more working tenants looking to rent because it is still so difficult for first-time buyers to get onto the housing ladder. “However, we know of many landlords who have rented to housing benefit tenants on for many years and have never had a problem, so our advice would be to always look at every tenant on an individual basis.
“Being a landlord is a business and there are landlords who specialise in letting in the housing benefit market. They tend to be the more experienced landlords with larger portfolios, who understand how to manage tenancies to ensure stability and minimise the risk of arrears.”
The following interview with Fergus Wilson appears courtesy of Property Tribes