Working couple and family face homelessness due to benefits | Discuss
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12:15 pm
20/05/2011
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QuoteA working couple with four children are facing homelessness as they struggle to find a landlord that will take them on because they receive a housing benefit top up.
The couple who live in Southgate have been asked to leave their current property by the end of October as the landlord is moving into the building. They have no rent arrears and there has been no evidence of antisocial behaviour.
The two eldest children will soon be moving out, one to find their own place and the other to go to university. This still means the couple have around two months to find a hope for them and their two youngest.
So far the search has been fruitless and many of the letting agents have asked for guarantors earning £43,000 or more. The couple simply don’t know anybody with this sort of income.
Unfortunately this situation is quite common. Landlords cannot afford to take on tenants that cannot pay the rent. This situation is made worse when tenants who have been asked to leave due to rent arears refuse.
Although they are completely within their rights to do so refusing to leave can mean costly court proceedings for landlords and lost rent. Many landlords cannot afford to be in this situation and so in future will simply refuse to take on tenants that may not be able to pay rent. This includes tenants on benefits.
It is an unfortunate situation but one in which nobody appears to be in the wrong. What then can be done?
Council housing is an option for some but the couple’s need is not seen to be dire enough for them to qualify.
The couple’s local council has also offered help through its rent deposit scheme. Through this scheme the council fronts the money for the initial deposit and acts as a guarantor for the tenants. Unfortunately finding landlords that are willing to be a part of the scheme is difficult.
Why is this? And are there other options for tenants on benefits?
Let us know what you think below.
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Beth Middleton for Landlord Referencing
12:39 pm
20/05/2011
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This problem is only going to get worse and here at LRS we are working with several councils to assist them in offering better referencing to offer landlords support in return for taking benefit tenants.
I had a conversation with a very prominent welsh politician this week who has stated that as the new regulations come in and the councils have less duty of care to house persistent problem tenants that they are trying to create a passport system for the good benefit tenants to keep good housing in the PRS.
I explained that LRS can be adapted as a tenant passport system simply by getting landlords and letting agents to join and upload their tenants. The passport is created because as they enter the data they will be offering both good and bad references and then it is up to the tenant what those references are.
I explained that is It is simple, very effective and can be implemented within a few weeks at no additional cost to any local authority. However I do wonder if that in itself maybe the problem when you tell government that you can help with the housing problem, antisocial behaviour problem and you can do it fast, effective and cheap they have never heard of such a thing..
Teasing aside, I do believe we will be working with many, many, councils soon as I really believe they are starting to see the light and that LRS is not a demon black list but a way of helping the good and keeping the bad at bay.
Please dont take my last bad tenant JOIN ME NOW HERE AT LRS and make a difference to your neighbourhood.
2.36 seconds you wish!!
Paul Routledge CEO
Tenant Referencing UK.Com
7:57 pm
12/10/2011
OfflineI have found working tenants who get a top up to be the BEST tenants. Generally they are hard workers and appreciate their home and are grateful for the top up. Much preferred to those who sit on their backsides waiting for their Giro! Oh dear! That dates me. 
5:53 pm
18/11/2011
OfflineSomeone tell them to tell their Landlord about Paul R's rent guarantee insurance! This will allow them to move and give the Landlord peace of mind that if they don't pay the insurers will.
The working couple may even be willing to pay the low premium.
Let Sir Terry Wogan explain it - > http://www.mostpeoplesavemoney.co.uk
1:08 pm
12/10/2011
OfflineThey will be seen as homeless so with kids the council will find them temporary accommodation, then must offer them permant. They are a priority as they have children, thete may be more to the story as councils dont need to rehouse people in rent arrears. or other issues.
But nowadays the prs offers better housing.
In Scotland rent is capped at council rent levels, which wouldnt cover the mortgage on a 100,000 one bedroom flat which tenants want. I also seen a young female angry because she had to give up her 2 bedrooms and move to a one. A single person doesnt need 2 bedrooms, that is the an added bonus if you work .
I can't afford to take benefits as the risk is too high. As a small landlord through default you actually starve when tenants dont pay ther rent. No access to hb, is, job seekers, council tax while bills pile up. It is amazing how few people know or believe this. I even presented a social worker with the evidence, yet he refused to admit that lls get nothing just because they own a second house. I wrote to king salmond, his aid answered with we will set up a housing panel.it could still take 6 months wait to get to a panel. Meantime you have to starve as he has no intention of helpingpoor landlords. Irrespective of the number of y3ars you have worked and paid tax.
Sore point.
3:33 pm
03/12/2012
OfflineWhen doing viewings for possible new tenants I see many applicants who are in a bad place and often I genuinely feel sorry for them.
Unfortunately, their social skills and finances do not make them attractive tenants. Regrettably, local councils do not have the housing stock to accommodate them and as is well documented many PRS landlords don't want them. You would have thought that councils and government would be encouraging PRS landlords to provide accommodation for this group, but they prefer to put obstacles in the way e.g. licencing, no direct payments, unnecessary legislation/regulation.
Full time experienced landlord & property investment mentor in West Yorkshire.
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