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According to the Independent; Britain’s estimated £25bn housing benefit bill for 2015-16 is being fuelled by soaring rents in the most prosperous parts of the country as workers struggle to find affordable accommodation.
In the South-East of England, Welfare spending is rapidly growing and being driven by the growing costs of housing benefit payments.
The Centre for Cities think-tank has said that welfare spending is growing rapidly in areas of the South-east of England which is largely driven by the growing cost of housing benefit payments.
A report by the think-tank has calculated that almost one million jobs have been created in the UK’s cities since 2010, however the average annual wages have dropped by £1,300 per person, making it more difficult for workers to make ends meet.
Despite record employment levels, spending on housing benefit in wealthier cities such as London, Cambridge, Bournemouth and Milton Keynes has risen 50% more than in lower-wage cities such as Glasgow and Liverpool.
Employers in London and the South-east have said that they are increasingly struggling to recruit staff because of the exorbitant cost of rents.
In an annual study of the UK’s 63 largest cities, it was found that all but one of the cities with the highest wages were in the south-east of England and exception was Aberdeen.
The league table was headed by London, where the average weekly pay is £675 compared to the lowest pay was in the north of England, with the lowest weekly wage of £399 in Huddersfield.
Finding ways of reducing spending on housing benefits is among the biggest problems faced by the Government, which has attempted to reduce entitlement. However, around one-quarter of tenants in private accommodation claim the benefit – and a third of them are in employment.
Do your tenants receive housing benefit?
Would you accept a tenant who is in receipt of housing benefits?
Even if it was just a top up amount?
I would accept a HB tenant on these requirements
They can afford the rent from ANY income they may have (Not just the HB they receive)
Also when UC comes in to use a CU to pay the FULL contractual rent from IRRESPECTIVE of what the HB element maybe!!
They can pay 2 months rent as a deposit
They pay 1 months rent in advance
They qualify for RGI or a guarantor does (A guarantor without RGI is useless)
My mortgage conditions are changed to allow HB tenants
My LL insurance allows HB tenants without any premium increase paid by me( I'd acccept the tenant paying the additional premium if needed though!)
Based on the above I don't reckon I'll be taking on many HB tenants anytime soon!!!??
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