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Do all Estate Agents reject people on Housing Benefit?

oliviaolivia12345
oliviaolivia12345 Posts: 80 Forumite
edited 31 December 2011 at 3:29PM in House buying, renting & selling
account no longer being used thanks to bullying from forum members.
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  • SquatNow
    SquatNow Posts: 2,285 Forumite
    AFAIK you don't have to volunteer the information but if there is a question on the application form and you lie then it would invalidate your AST and you could be kicked out with no notice.

    Catch 22 though... with LHA replacing HB I can't see meny landlords wanting to touch you.... sorry. With you changing properties you will be re-assessed and paid LHA instead of HB.

    At least with HB they could have the money paid straight to them. LHA is paid to the tennant and may not even cover the full rent.

    Landlords rent to LHA tennants at their peril.

    There are a LOT of landlords suffering voids, and while they may seem like an ideal "target", they are having long voids because the rent is too high, usually because they need a high rent to cover the mortgage. Again Catch 22... landlords charging lower rent tend to be long term landlords who have had the property for a long time. (And so have lower mortgage costs and can afford to rent for less.) Long term landlords look for reliable rent payment rather than high rent... LHA tennants would not appeal to them at all.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • PasturesNew
    PasturesNew Posts: 70,698
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    Don't tell them. If you're self-employed then find a smart-sounding phrase to say what you do and leave it at that.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Anyone on HB will need a guarantor to be considered..
    Trying to keep it simple...;)
  • [quote=SquatNow;
    Catch 22 though... with LHA replacing HB I can't see meny landlords wanting to touch you.... sorry. With you changing properties you will be re-assessed and paid LHA instead of HB.

    Err, thats not quite true!


    At least with HB they could have the money paid straight to them. LHA is paid to the tennant and may not even cover the full rent


    Previously many HB claimants had their entitlement paid direct to them which was forwarded to the LL.


    Landlords rent to LHA tennants at their peril.



    Absolute nonsense.
  • Notlob
    Notlob Posts: 335 Forumite
    olivia,

    Question - What will you do if you do not find another property?
    Notlob
  • barnaby-bear
    barnaby-bear Posts: 4,142 Forumite
    What would the consequences be if I did not tell them when I should? Could I be evicted without notice? fined? I am quite nervous about it.

    I am also worried about my credit report, which will be appauling as I have about several credit cards defaults... all built up from when I was a student (A few years back).

    I have no idea what I am going to do if I cannot find anywhere.. .even private rentals seem to be more demanding than Agencies, asking for 2 months rent, plus deposit, plus credit checks...

    I guess you are single so how about a house share? Since the liability is only a portion of the rent you might meet the credit checks there.
  • PasturesNew
    PasturesNew Posts: 70,698
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    What would the consequences be if I did not tell them when I should? Could I be evicted without notice? fined? I am quite nervous about it.

    The main issue here is the concept of HB. HB claimants being refused is usually in relation to the fact that landlords' lenders don't allow it and/or their insurance costs are higher. Add into this the perception of a stereotypical HB claimant (sole source of income from benefits/no plans really to change) and they want to stay well clear of it.

    I'm guessing that you're self-employed and haven't yet generated sufficient income so are getting HB as part of some "low income earner" criteria. You are therefore planning on building up your business. I presume you are on HB therefore because your business model is wrong, your business will take up to 2 years to build up a good income or you are living in an area where rents are very high (e.g. London) and although on paper earning good money it doesn't quite cut the mustard when it comes to paying the rent (yet).

    So it's a moral issue here. Are you an HB claimant? Or are you self-employed? And which to declare.

    While the honest side of you sees "no HB" and worries. The reality is you are self-employed, so not just relying on benefits for your income.

    Out of interest (yeah, I'm nosey), it helps us sometimes to put things into context, so: what do you do? what are your circumstances such that you're claiming HB?

    You can't be evicted or fined for not declaring it.
    I am also worried about my credit report, which will be appauling as I have about several credit cards defaults... all built up from when I was a student (A few years back).

    I have no idea what I am going to do if I cannot find anywhere.. .even private rentals seem to be more demanding than Agencies, asking for 2 months rent, plus deposit, plus credit checks...
    This could be an issue. Each landlord is different. However, with a bad credit record you might be asked to pay 6 months' rent up front.

    Maybe for now it would be best to pursue the shared house option, just to give you breathing space when time is short. It will be cheaper, you can build up your business without high living costs. It's easier to get in without credit checks (try gumtree.com to find a private landlord) or rentaroom.com or similar domain names.
  • barnaby-bear
    barnaby-bear Posts: 4,142 Forumite
    Maybe for now it would be best to pursue the shared house option, just to give you breathing space when time is short. It will be cheaper, you can build up your business without high living costs. It's easier to get in without credit checks (try gumtree.com to find a private landlord) or rentaroom.com or similar domain names.

    It never occurred to me to claim HB when I was on a low income, thinking about it all my housemates would have been eligible I just assumed lodging or shared houses were the only options to living at home (that was the last ditch really broke option :rotfl: )
  • PasturesNew
    PasturesNew Posts: 70,698
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    It never occurred to me to claim HB when I was on a low income, thinking about it all my housemates would have been eligible I just assumed lodging or shared houses were the only options to living at home (that was the last ditch really broke option )
    You wouldn't get it if you're in shared housing.

    It's not about a low income on its own. It's about a low income and high rent/council tax. It's about what's left over.

    When sharing a house you're sharing the cost/bills, so it's cheaper.

    And one person's "low income" is another person's fortune.

    Some people think earning £20k is low!!!
  • barnaby-bear
    barnaby-bear Posts: 4,142 Forumite
    You wouldn't get it if you're in shared housing.

    It's not about a low income on its own. It's about a low income and high rent/council tax. It's about what's left over.

    When sharing a house you're sharing the cost/bills, so it's cheaper.

    And one person's "low income" is another person's fortune.

    Some people think earning £20k is low!!!

    Yeah but if I'd been more clued up I wouldn't have stayed in the shared house but got a flat and claimed HB for the higher rent... I was paying £300 in a shared house on a £6k net income and didn't feel hard up - you don't need much when single but it never occured to me living alone was a possibility.....
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