LHA/Housing Benefit Payments??

PasturesNew

If you are single, living alone, in a self-contained place, over 25, then you will get LHA at the 1-bedroom rate. If the rent is more than this, it's up to you to make up the difference.

The deposit is not the last month's rent. You would still pay the last month's rent when it is due and the deposit (less damages) comes back to you approximately a month after you leave
You need to find out/check your LHA rate for your age in your area.

Rule 1: NEVER trust what an agent says.

Jowo_2

netgear11 wrote: »

£1000 for the deposit (last months rent?)
£1000 for month in advance

Two sums which need to be settled upfront before moving in.

..So If I were to lay out the £1000 deposit, the agent would refund it to me upon receipt of the acceptance of my claim for HB and help with the deposit..So then she has my other £1000 as a months rent in advance, which I

should get back at the end of the tenancy agreement.

Have I got this right?

It is completely usual for tenants to pay the full deposit AND first months rent in advance before the agent (or landlord) gives the tenancy agreement and key and to get neither back during the course of the tenancy. It is highly unusual for tenants to move in without paying both (albeit some are under guarantees for them through local council schemes).

It is odd for an agent to say they will refund rent/deposit after it's been paid which is probably why you are confused - the agent is deviating from normal practice.

Either that or its not clear to you that landlords expect their tenants to pay monthly in advance while there is a lag for LHA claimants who receive their payment 4 weekly in arrears - this upfront gap between when the landlord wants payment and when the claimant receives LHA is the benefits claimants problem to resolve. It doesn't usually involve the kinds of refunds that your agent has discussed.

Landlords don't like tenants to withold their last month's rent - it means there's nothing left if there is damages/cleaning to pay for and this is why a deposit is retained until the end of the tenancy.

Look into making a request for an interim payment after 14 days if they haven't processed your claim in full. I understand the HB department are obliged to make an payment if they've received all the correct paperwork from the claimant but this has to be asked for, it's not automatic.

The Shelter website will detail how a private tenancy works, the usual process

netgear11

Hi guys and thanks for all your continued help and assistance!

Just went to speak to the HB people that deal in the deposit side of things..

First the lady argued with me about which borough the flat was in..

Then she said how some people are going to come to where I'm staying at the moment to interview me? Is this protocol? The thing is though, I am supposed to move into this property by Monday 17th latest and this interview is booked for the earliest on Wednesday 19th.... Crap!

boristbear

netgear11 wrote: »

Hi guys and thanks for all your continued help and assistance!

Just went to speak to the HB people that deal in the deposit side of things..

First the lady argued with me about which borough the flat was in..

Then she said how some people are going to come to where I'm staying at the moment to interview me? Is this protocol? The thing is though, I am supposed to move into this property by Monday 17th latest and this interview is booked for the earliest on Wednesday 19th.... Crap!

I think this thread is becoming confusing as you are discussing two separate things. The deposit scheme has nothing to do with Housing Benefit. As BCS has mentioned, not all councils have a scheme for deposits and those that do do not necessarily have the same scheme. Some councils have a 'paper' scheme where they don't pass on any deposit but issue a guarantee to the landlord. Your council's website will probably give you the details but it is normal to have a visit and an interview for most of these schemes.

The Housing Benefit would not usually require a visit. You can only claim HB when you have moved in anyway but you really do need to check your rate before you sign a tenancy - I see BCS states that you have but I didn't see any mention of it and if it were me I'd want to be certain of the rate I was getting.

netgear11

I've checked my rate.. I don't think I am discussing two seperate things.. They are both related...

I'm trying to claim HB. In fact I've already been to the HB office and told him that I'm moving in on Monday week. He said that he'd sort the claim and it will be processed as soon as they receive the tenancy agreement. now, before I sign the tenancy agreement I need the deposit, which is why I went to this HB office, where the lady said she'd arranged for two interview officers to come and visit me on Wednesday week..

Only problem is (assuming I am eligible for this help) is that I am due to move in to the property on Monday, yet won't be granted the rent desposit thing until Wednesday at the earliest..

boristbear

netgear11 wrote: »

I've checked my rate.. I don't think I am discussing two seperate things.. They are both related...

I'm trying to claim HB. In fact I've already been to the HB office and told him that I'm moving in on Monday week. He said that he'd sort the claim and it will be processed as soon as they receive the tenancy agreement. now, before I sign the tenancy agreement I need the deposit, which is why I went to this HB office, where the lady said she'd arranged for two interview officers to come and visit me on Wednesday week..

Only problem is (assuming I am eligible for this help) is that I am due to move in to the property on Monday, yet won't be granted the rent desposit thing until Wednesday at the earliest..

They are related but these are separate things. From what you have said you won't have any problems with the HB, the claim can not be finalised/put into payment until you have actually moved in but as long as you get your application and anything they request (tenancy etc) to them quickly you will soon be getting 2-weekly payments of either twice your LHA rate or twice your weekly rental liability + £30 if that works out at less. These will be paid in arrears so, assuming your council do process your claim as soon as you move in, your first payment will be about two weeks after you move.


The deposit scheme will depend on the council, there are so many variations you will need to get the details from them. If you have to move in and pay the deposit before the council's deposit is sorted I'd budget for not getting the money you pay the agent back just in case but there are some trustworthy agents out there and if they have dealt with this council before they should know the procedure. Good luck.

netgear11

Okay thanks for your help.

As I said, I've already visited the HB department that deals with the securing of deposits etc for HB tenants. And they told me that they will be sending a rep around to the place where I am currently living (a friends) to interview me.. I guess to establish that I am clean, responsible and respectable tenant as they will be essentially acting as my guarantor, correct?

So that's sorted and they'll be round Wednesday..

However, I need to take the flat by Monday latest - or the agnt will pull it from me and give it to someone else..

So I'm suggesting I just give her the agreed 1-months rent in advance and ask her to please sit tight until Wednesday... But I'm doubting she'll agree with that..

..In which case I'll have to give her the other £xxx deposit and then agree that she will give it back to me as soon as/if the council agree to act as my guarantor/or front the deposit in cash..

Highly unorthodox from start to finish, I'm sure...?

Jowo_2

netgear11 wrote: »

Highly unorthodox from start to finish, I'm sure...?

Yes, what you are finding out is that the HB/LHA system and the process for renting privately are completely out of synch with each other.

A claimant may struggle to get the deposit and first months rent together to pay upfront but this is a basic requirement from private landlords. The HB/LHA system is cumbersome and isn't particularly nimble.

This is one of the many reasons why many private landlords dislike the system and hence won't accept claimants.

boristbear

Jowo wrote: »

Yes, what you are finding out is that the HB/LHA system and the process for renting privately are completely out of synch with each other.

A claimant may struggle to get the deposit and first months rent together to pay upfront but this is a basic requirement from private landlords. The HB/LHA system is cumbersome and isn't particularly nimble.

This is one of the many reasons why many private landlords dislike the system and hence won't accept claimants.

This is true. If a landlord does let to a tenant without taking the deposit and a month's up front rent it is also very easy for the tenant to simply keep the LHA for 2 or 3 months then abandon the property and do the same thing again to a new landlord. It happens a lot and it doesn't take landlords long to see the dangers so more and more will either not take people on benefits or at least insist on cash up front. I'm a landlord and I have to do this as I have been ripped off when I've tried to cut someone on benefits a bit of slack.

In answer to netgear's post I don't think it is that unorthodox. As long as the agent accepts whatever deposit scheme your council has they should be happy with that deposit so if they are above board I can't see why they shouldn't refund you if they have two deposits. As I said before all these scheme are different so check with the council but the only thing that would trip you up if you were in the area where my properties are is the fact that you wouldn't qualify for the deposit scheme as you had managed to find the money for the deposit yourself.

netgear11

boristbear wrote: »

This is true. If a landlord does let to a tenant without taking the deposit and a month's up front rent it is also very easy for the tenant to simply keep the LHA for 2 or 3 months then abandon the property and do the same thing again to a new landlord. It happens a lot and it doesn't take landlords long to see the dangers so more and more will either not take people on benefits or at least insist on cash up front. I'm a landlord and I have to do this as I have been ripped off when I've tried to cut someone on benefits a bit of slack.

In answer to netgear's post I don't think it is that unorthodox. As long as the agent accepts whatever deposit scheme your council has they should be happy with that deposit so if they are above board I can't see why they shouldn't refund you if they have two deposits. As I said before all these scheme are different so check with the council but the only thing that would trip you up if you were in the area where my properties are is the fact that you wouldn't qualify for the deposit scheme as you had managed to find the money for the deposit yourself.

Thanks again guys.

The only thing that seems fishy to me is that the agent was the person who initially recommend we speak to the council about finding he deposit... She gave me the contact number and everything... However, I got the impression from her that she believed she (as the agent) would receive MONEY for the deposit from the council and she didn't say anything about a GUARANTEE.

So, I'm hoping when she finds out they're acting as my guarantor only and not actually giving them money, she'll still be okay with it. Can't see why not..?

And with regards t the part in bold - that does sound like a major trip up point. Might it help if I told her I was borrowing the money from a friend? Which I am..

I mean, I'm guessing there's more to it than that as the lady has already asked me these sort of questions when I was at the office and she has still scheduled an interviewer to come and visit me, so it's all so far so good.. It's just the timing that could have been more smooth.. Would have saved us from having to give a cash deposit an then have it refunded etc etc.

(I'm going to tell the council that the landlord is letting me move in and asks that we arrange the desposit after we've had the interview..)