Universal Credit – Do I really need a new AST?

Universal Credit – Do I really need a new AST?

14:36 PM, 11th July 2016, About 8 years ago 34

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I’m looking for advice from my fellow Housing Benefit accepting landlords.contract new

As more tenants are beginning to migrate to Universal Credit (UC) I am finding that I am being asked by the tenant (after being told by DWP) for an up to date/new tenancy agreement in order for their UC claim to be processed.

Previously I have let this go as the individuals were long standing clients looking for top-ups firstly by HB and subsequently via UC.

However the latest client could be politely termed ‘at risk/vulnerable’ (weed/alcohol) but of course does not see herself within this category. Currently her HB is paid direct to me. I am reluctant to issue a new tenancy agreement putting me at risk for the next 6 months whilst the DWP happily put £400 a month into her account. And they will not consider a Managed Payment direct to me until she is 2 months in arrears. The only other option is to get the tenant to provide documentary evidence that they are ‘at risk’ – difficult when they don’t agree.

As I see it, my tenancy agreements are standard ASTs and therefore are periodic rolling tenancies once the initial 6 months is up. Why do I need to issue a new one?

Has anyone experienced this before? Should I just provide an up to date rent statement showing rent due and frequency and a covering letter stating why I will not issue a new tenancy?

(As an aside I’ve found it is very important to obtain National Insurance numbers from tenants if you want to deal with the DWP.)

Thanks,

Dave.


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Comments

Robert M

16:08 PM, 16th July 2016, About 8 years ago

Reply to the comment left by "Mick Roberts" at "16/07/2016 - 15:52":

From the UC Team's response I don't think they even read the e-mail, they just gave a standard reply. I've no idea how old they are, they could be 50 years olds just reading from a script (or in this case pressing the "standard response to e-mail" reply button).

The problem is that they won't speak to landlords unless they are authorised by the tenant to do so, BUT they will not accept written authorisation from the tenant, so that means they will only speak to the landlord if you are in the room with the tenant at the time and they authorise this verbally. Likewise, they refuse to accept any correspondence via e-mail, even if it is of a non-confidential nature, because they consider it to be insecure (but they give no information on how a landlord can make it secure enough for them to then accept e-mails). And they then are so stupid as to say that information should be posted to them, yet we all know that MILLIONS of items of post are lost or wrongly delivered every year, so how the hell can that be more secure than an e-mail? - Their "logic" just does not make sense!

MoodyMolls

16:10 PM, 16th July 2016, About 8 years ago

This year I have now stopped taking people on benefits but if working tenants lose their job they will be subject to it. With Section24 and UC these tenants are like sitting ducks and will be the first for eviction, why would landlords risk keeping them ?

On top of this for the 2bed and 3bed rate in my area they are 100 pcm short of market rent and this has been frozen til 2020.

Robert M

16:17 PM, 16th July 2016, About 8 years ago

Reply to the comment left by "KATHY MILLER" at "16/07/2016 - 16:10":

Exactly. If the UC system does not change so that problems can be communicated and resolved, then landlords will have no choice but to evict otherwise good and decent tenants (not to mention those that don't meet the good and decent criteria). Also, there will be no reason for landlords to carry on taking tenant's who are on benefits (or whom landlords think may go on to benefits during the tenancy). - Then who is going to house these people????? - I know it won't be the councils, as their waiting lists are about 10 - 15 years long, so these households are going to end up in expensive B&B (if they have kids), or homeless on the streets (if they have no children).

MoodyMolls

20:39 PM, 21st July 2016, About 8 years ago

"Lord David Freud has commissioned an “urgent” review into the high rate of rent arrears owed by Universal Credit claimants.

The welfare reform minister said the number of Universal Credit claimants in debt was higher than he had expected. He described the proportion of claimants already in arrears before they switched over to direct payment of benefit for housing costs under Universal Credit as “frightening”."
http://www.insidehousing.co.uk/ihstory.aspx?storycode=7016094&utm_source=Ocean%20Media%20Group&utm_medium=email&utm_campaign=7350148_Hot%20Topics%2021.07.16&dm_i=1HH2,4DJES,M5MP9L,G2M6A,1

Robert M

9:33 AM, 22nd July 2016, About 8 years ago

Reply to the comment left by "KATHY MILLER" at "21/07/2016 - 20:39":

As Inside Housing tend to specialise in reporting on and being heavily bias towards social housing, I imagine Lord Freud will get figures relating to the arrears owed by social housing tenants, as these are easily accessed, whereas private landlords do not tend to collate and report (who to?) arrears figures, or break them down into different tenant income groupings. As there are no statistics for arrears owed to private landlords (particularly as UC ignore correspondence from private landlords), then there is only anecdotal evidence of the problems that private landlords face with UC and the rent arrears caused by UC.

As social housing rents are very low due to them being heavily subsidised by the taxpayers (via housing grants given to councils and registered social landlords for purchasing or building properties on land given to them for free), then any figures that Lord Freud will be using as his rent arrears figures, will only be a fraction of the rent arrears level owed to private landlords.

Let's hope he also reads the posts on here, and also seeks feedback from private landlords who deal with UC claimants.

MoodyMolls

10:28 AM, 22nd July 2016, About 8 years ago

Reply to the comment left by "Robert Mellors" at "22/07/2016 - 09:33":

Perhaps we should all be writing to him to highlight what is really happening and the evictions which have started

Robert M

22:01 PM, 22nd July 2016, About 8 years ago

Reply to the comment left by "Robert Mellors" at "22/07/2016 - 09:33":

According to the title of this article:
http://www.landlordreferencing.co.uk/blog/50-of-universal-credit-claimants-now-in-arrears/?utm_source=Newsletter&utm_campaign=6579ba1ccd-Newsletter_25_02_20162_25_2016&utm_medium=email&utm_term=0_da2a32faa8-6579ba1ccd-300899317

50% of Universal Credit claimants have rent arrears, BUT it then goes on to say that the latest figure from a survey of council housing tenants is that a whopping 79% of UC claimants have rent arrears!!!! - Yes, 79%.

The figures are from a report by the associations representing ALMO's (council owned "arms length management organisations") and councils who have retained their housing functions. - In other words, 79% of UC claimants in rent arrears is the figure for tenants in subsidised low rent accommodation (social housing).

If it's 79% in low rent social housing (i.e. by definition more "affordable" housing), then the figure must surely be much higher for tenants in private rented housing!

Robert M

22:04 PM, 22nd July 2016, About 8 years ago

Reply to the comment left by "KATHY MILLER" at "22/07/2016 - 10:28":

If you have his e-mail address you are welcome to send him all of my comments.

TheMaluka

23:49 PM, 22nd July 2016, About 8 years ago

Reply to the comment left by "Robert Mellors" at "22/07/2016 - 22:01":

'Money in Bank' leads to 'Beer in belly'

Sharon Betton

12:18 PM, 27th July 2016, About 8 years ago

Reply to the comment left by "Robert Mellors" at "22/07/2016 - 22:01":

I have written frequently to "Inside Housing", championing the private sector and complaining about the lack of coverage of private sector issues. More and more housing professionals, like myself, will find their working lives are involved with private landlords. Enough of a rant, the rent arrears for social housing are appalling. Having worked in the social sector, I am amazed that arrears can be accruing to the extent they are. Where are the relationships between housing officer and tenant? It should be so much easier to maintain these on a "patch" basis. The fact it clearly is not should indicate to Lord Freud that the very necessary properties provided by the private sector are at risk due to universal credit.

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