54% of landlords experiencing arrears from Universal Credit tenants
According to research by the Residential Landlords’ Association (RLA), Universal Credit is causing tenants to fall behind with their rent.
It reports that 54% of private landlords who have let to tenants on Universal Credit in the past 12 months have seen them fall into rent arrears.
Private landlords renting to Universal Credit claimants can apply to have the housing element paid directly to themselves when a tenant has reached two months of rent arrears.
This is known as an Alternative Payment Arrangement (APA).
The RLA’s research shows that it took landlords an average of almost 8.5 weeks for an APA to be arranged – meaning that landlords can be left with almost four months of rent arrears before they begin to receive the rent they are owed.
The research further found that 36% of landlords said that they had buy-to-let mortgage conditions which prevent them from renting to benefit claimants.
The RLA is calling on the Government to do more to prevent rent arrears occurring in the first place, including:
• Allowing all tenants from the start of a claim for Universal Credit the ability to choose to have the housing element paid directly to their landlord.
• An end to the five week waiting period to receive the first Universal Credit payment.
• An end to the Local Housing Allowance freeze to ensure it reflects the realities of rents in the private sector.
RICS tells government to stop meddling in private rented sector
The Royal Institution of Chartered Surveyors has said the Government needs to stop meddling in the private rented sector.
In a new policy statement, the RICS said that the private rented sector has doubled over the last 20 years and is now home to a fifth of all households.
However, it goes on: “Continued government interference in the sector has led to landlords leaving the market, leading to the leakage of stock into sale and decreasing stability and standards for tenants.”
The RICS says that all property agents should be regulated to a single property code, which should be extended to private landlords. But as a private landlord do you think you should be ‘regulated by a single property code’ - whatever that means!
The organisation also warns against rent controls, much loved by Corbynistas, saying these will not alleviate affordability issues as private landlords exit the market.
The new policy paper does however show the RICS’s misguided support for the abolition of Section 21, but the organisation calls for court processes for repossession proceedings to be streamlined before Section 21 is removed from the statute books.
Evicting Rogue tenants can cost landlords up to £40,000
Latest research by a major estate agent shows that landlords across the UK can face a bill of more than £30,000 to get rid of a rogue tenant.
This includes loss of rent, the costs of eviction and fixing the damage to their property once these disgusting people have finally been evicted.
Of course the ‘namby-pamby’ tenant friendly British legal system plays a big part in this, with every possible protection being afforded to tenants. It can often take many months to evict a tenant who has stopped paying their rent and rogue tenants usually know how to play the system. In fact the research has shown that landlords typically lose around nine months’ worth of rent while trying to evict a rogue tenant.
The costs of evicting rogue tenants in prime central London properties are considerably higher, reaching over £40,000.
What’s more, criminal gangs are now renting expensive properties and then sub-letting them on Airbnb at a huge profit. And they know that the stupid legal system will allow them to stay there without paying rent for many months. When will the idiot government ever learn?
There’s no Housing Crisis, there’s a South East Housing Crisis!
All the time you hear people complaining about the shocking rise in the price of UK property and how it’s stopping first-time buyers from getting on the housing ladder.
But this is mainly happening in South East England and one or two other hot spots. There are a number of local housing markets where homes actually cost far less than they did ten years ago! Yes, LESS.
In one part of Liverpool, for instance, the average house price at the end of 2008 was £116,821,
but by the end of last year it was £65,178
is one of ten places, all in the north, where house prices in certain local markets have dropped at least 33%.
The average price in parts of Bradford
in 2008 was £103,531
but by 2018 it had plummeted to £65,747.
This in my opinion points to the need for government, instead of bashing landlords and endlessly building houses in the Home Counties and pressing ahead with nonsense like Heathrow expansion and HS2, they should redirect infrastructure to the north and offer incentives to private industry to relocate there.
Government blocks council’s landlord licensing scheme
Stoke-on-Trent has been refused permission to introduce a licensing scheme that would have affected some 3,000 rental homes.
In a rare bit of good news for landlords, the Ministry of Housing, Communities and Local Government has rejected the application, saying it did not meet the statutory criteria.
The plans had been opposed by landlords, but had been put forward by the council following a public consultation.
A council spokesperson said: “We can confirm we have received notification from the government department on this. We are in dialogue with the the ministry about this refusal.”
Local authorities must demonstrate that areas have a high proportion of privately rented homes, and at least one other criteria, including poor property conditions and high levels of crime.
Among authorities planning new money-making licensing schemes are Lewisham and Islington - surprise surprise!
Fees ban has led to rise in rents across the UK
In the wake of the fees ban and landlords being forced out of the market by government legislation, rents have been rising across the UK.
The average time it takes to let a property in the Uk is down to only 20 days, with three bedroom properties moving the fastest.
According to HomeLet, the only English region where newly agreed rents have gone down is the north-east.
The biggest monthly jump in newly agreed rents in July was in Greater London, where there was a 3.4% rise to £1,665.
So, the Law of Unintended Consequences that the current crop of idiot politicians don’t understand has struck again. But at least it is some long-awaited good news for landlords.
Section 21 going but courts failing landlords, have YOUR say
The government is still hell-bent on getting rid of the Section 21 No Fault Eviction process, but has not yet put anything in it's place to help landlords regain rightful possession.
New statistics show that it takes private landlords, on average, 22.5 weeks from making a claim to actually getting possession. This compares to the 21.6 weeks figure for Q1, 2019.
The Ministry of Housing, Communities and Local Government is currently conduction a consultation on the removal of Section 21 and how it should be replaced.
You can have YOUR say here, on the government website.
Courts continue to let down landlords seeking repossession