Ways around being disqualified for being on housing benefit?

Penny_watcher_2

I have been in a place in the city centre for 2 years now. When I first moved in I didn't tell them I was on benefit till we were drawing up the paperwork. When I said it they were like 'ohhh ahhh um we don't accept benefit'. After a bit they say they accept it with my mother as a garauntaur but they did so with marked reluctance, i.e. it they were prefer I weren't on it.

Thinking I would be forthright about my situation this time I sent about four emails out to estate agents asking for places which were suitable for me and at the end put that I am on housing benefit but stating my mother would act as garauntaur. I have received no reply from any of them. I know this has gotta be due to putting housing benefit at the end because when I sent out messages the previous times (not mentioning I was on HB) they were dogging me within minutes offering me places. As I sent the fourth I realized this may be the case so thought I would regroup before sending any more.

I really don't get why there is this stigma against housing benefit. Logically in terms of being able to pay the rent housing benefit is just as reliable as any other source of income as the government are extremely reliable. The only reason I can think is there is a negative stereotype that people on benefit will be unreliable and druggys or something like that but in this day and age that seems simialr to automatically judging someone on their skin colour- 'sorry we don't accept black people without references'; just another form of discrimination based on a loose stereotype. So I'd be interested to hear anyone's theories on the reasosn why they don't accept it as I see it being a viable source of income but that is a small side tangent.

That is what is so stupid, I can afford the rent but they just automatically disqualify me when they hear housing benefit. So what are some ways around this?

I have been thinking I could just not tell them at all but if they ask for proof of income seeing as the large part of it is from housing benefit then that might not work- I'm not sure what they ask for precisely though, if it is just to write down my income rather than offer proof then that is ok but I have a feeling they ask for some kind of proof not sure what though.

Alternatively I thought I could just get my mum to say she is paying for it to the estate agents (as she is all legit as a 'professional') then when I get my HB cheques just send them to her. As far as I know the estate agents and housing benefits don't liaise with one another. I remember filling out a HB form and it asked if it was ok to contact the estate agents should they need to- this was a funny question to ask, anyone know why it's there? because I thought if I say 'no' they will think why and have cause to be suspicious. In that case I just put yes seeing as the current landlord already knew I was on HB.

So do those options I have stated seem viable? -my mum acting as the 'legit source' seems my best bet so far. Any others people can think of?

poppysarah

Ask the council if they have a list of landlords who'll accept LHA

Fire_Fox

There is a lot more to it than stereotyping, for a start people on means-tested benefits are on a low income and they are unlikely to have much in the way of savings. This means if something goes wrong even the most genuine tenant can quickly get into financial trouble. LHA is paid in arrears which potentially means a tenant will be permanently playing catch up. Furthermore LHA is paid on a weekly/ fornightly basis whereas rent is usually due monthly, again this can make budgeting difficult for the tenant.

Councils also have a habit of suddenly withdrawing benefits, either due to an investigation or to clerical error: it can take months for this to be sorted out leaving LHA tenants unable to pay their rent. This is less likely to happen to an employed tenant, even if they were made redundant they would be given notice and perhaps a payout.

Lastly there is a small contingent of 'professional tenants' and career benefit scroungers who spoil it for the rest of us (I am on JSA but not LHA). In those cases even if the landlord successfully gets a CCJ he is unlikely to more than a couple of quid a week, whereas with an employed ex-tenant there is the option of an 'attachment of earnings'. As much as anything tho, many landlords do not want to have to deal with the vaguaries of council policy and (in)efficiency rather than being necessarily prejudiced against LHA tenants themselves.

moromir

Penny_watcher wrote: »

So I'd be interested to hear anyone's theories on the reasosn why they don't accept it as I see it being a viable source of income but that is a small side tangent.

Penny_watcher wrote: »

I really don't get why there is this stigma against housing benefit. Logically in terms of being able to pay the rent housing benefit is just as reliable as any other source of income as the government are extremely reliable.

Housing Benefit, which I believe is now called Local Housing Allowance (LHA) is normally paid in arrears, so if your rent is due 13th April, it is likely that you will not recieve funds until after this date which means that it is likely tht you will be in arrears with your Landlord, I appreciate this could happen with any tenant but it is likely scenario with LHA.

There is also the absolute saga of who gets paid. If LHA is paid directly to the Landlord or Agent, and the Council subsequently finds out you are entitled to less money, they will persue the LL or Agent for the shortfall, not you. Which potentially lands you in arrears with no way to pay them off and the LL in admin hell.

If you get paid the LHA, there is absolutely no guarantee for the LL that you will forward this money to them.

Penny_watcher wrote: »

That is what is so stupid, I can afford the rent but they just automatically disqualify me when they hear housing benefit.

You cannot afford the rent in your own right on your own income, which is why the state is providing you with LHA.

Penny_watcher wrote: »

I have been thinking I could just not tell them at all but if they ask for proof of income seeing as the large part of it is from housing benefit then that might not work- I'm not sure what they ask for precisely though, if it is just to write down my income rather than offer proof then that is ok but I have a feeling they ask for some kind of proof not sure what though.

A reputable Agent or a sensible private Landlord will reference check you using an Agent such as MyHomes or Letsure. They will require details of your employer with whom they will confirm your salary. This salary is then run through an equation which they use to ascertain your affordability, if you are eligible for LHA I think you can assume that you would fail the affordibility check.

Penny_watcher wrote: »

Alternatively I thought I could just get my mum to say she is paying for it to the estate agents (as she is all legit as a 'professional') then when I get my HB cheques just send them to her.

IF you got past their referencing and even reached this point, you could have your mum make the payments but what would you do (heaven forbid) if something happened to your mum and she wasn't able to make the payments for you? The Agent/ Landlord won't be concerned with your personal circumstances when you've signed a contract to pay the rent by date x.

Penny_watcher wrote: »

As far as I know the estate agents and housing benefits don't liaise with one another. I remember filling out a HB form and it asked if it was ok to contact the estate agents should they need to- this was a funny question to ask, anyone know why it's there? because I thought if I say 'no' they will think why and have cause to be suspicious. In that case I just put yes seeing as the current landlord already knew I was on HB.

Simply, to be in accordance with the Data Protection Act. If in future you need your LHA to contact your Landlord, they'll require you to sign something to the effect that its ok to discuss your 'case' with them, its just a preemptive strike admin wise as far as they are concerned.

Penny_watcher wrote: »

So do those options I have stated seem viable? -my mum acting as the 'legit source' seems my best bet so far. Any others people can think of?

All the things you've suggested sound like a swift route to a Section 21 notice if the Landlord finds out. Is it at all possible for you to save up six months rent in advance, or have your mum loan you the money? Then you could get your 'account' well in advance with the Landlord and pay your mum/ yourself back with the LHA as it came in?

Jowo_2

Penny_watcher wrote: »

I really don't get why there is this stigma against housing benefit. Logically in terms of being able to pay the rent housing benefit is just as reliable as any other source of income as the government are extremely reliable. The only reason I can think is there is a negative stereotype that people on benefit will be unreliable and druggys or something like that

LHA tenants, like students, are regarded as riskier tenants, more likely to go into arrears (especially now as it is paid directly to the tenant rather than the landlord which happened under HB) and virtually impossible to get any arrears recouped,

Landlord reluctance normally relates to this and the HB system rather than stereotypes. Don't forget that the LHA is paid 4 weekly in arrears and most rents are payable monthly in advance too - the benefit system doesn't mirror how tenancies actually work.

It is harder to evict a LHA tenant and that's a big turn off for landlords. Local councils commonly tell any tenant that approaches them for assistance if they receive notice from the landlord to remain put until the landlord has taken them to court or the council will treat them as if they've made themselves intentionally homeless.

So tenants have the reputation for getting into arrears and landlords are frequently forced to take them to court to regain possession - only landlords with a high appetite for risk and potential losses are comfortable with this.

Penny_watcher_2

Most of these arguments against them accepting HB are just as relevant to if you were earning 'steady pay'.

With the credit crunch crap your salary is just as 'on the line'.

@moromir

Likewise, you talk about the EXTREME example of my mum dying, it is more likely you would get fired from/lose your job than the parent suddenly passing (statistically in the short time which you reside as a tenant at the property). Even if she did (since you wish to follow this extreme line of thinking) I would have her will money to pay for it.

This is beside the point really. I don't want to get bogged down in the why is it the way it is, cos it is and it isn't changing any time soon so better to work around it.

Simply, to be in accordance with the Data Protection Act. If in future you need your LHA to contact your Landlord, they'll require you to sign something to the effect that its ok to discuss your 'case' with them, its just a preemptive strike admin wise as far as they are concerned.

^ So legally this means they can't contact my landlord if I told them 'no' in the box (as per data protection act)? I certainly could not see myself 'needing' them to contact the landlord for anything.

In terms of references if my mum were the one paying then I guess they would credit check my mum but ask for references from my old landlord (cos I'll still be the one living there). In that case there is a chance the old landlord would say I was on benefit but I don't see any reason why that would come up. In terms of questions I imagine they'd just ask if rent was paid on time and if I was a good tenant (I have never once missed a payment in 2 years of living there). Even if they found that I was on it (unlikely as I don't see they would have cause to ask) I could just say 'I was but not any more as my mum is paying it now'.

Jowo_2

Penny_watcher wrote: »

Most of these arguments against them accepting HB are just as relevant to if you were earning 'steady pay'.

.

No they are not. Clearly you aren't paying attention to the myriad of reasons that deter landlords from LHA tenants compared to working ones.

It is easier for a landlord to recoup arrears from someone who has an income, they are more likely to be sensitive about the harm done to their credit record and have the means to pay back arrears in the future.

Also, a working tenant knows that if they approach the council for rehousing, they will get virtually no support from them, so there is a lot less chance of them ending up in the position whereby the local council instructs them to ignore the notice.

A landlord cannot get any money out of a tenant who has virtually no income and not much prospect of having any in the future, who doesn't feel any impact of harm done to their credit record because by being on benefits, they are unlikely to qualify for it anyhow.

LHA tenants are harder to evict - this is a major reason why landlords won't accept them - they end up stuck with them for many months longer compared to working tenants who are more likely to cooperate with the notice they have served and who will not find it as hard to secure onward accommdation.

Jowo_2

Many landlords will ask the tenant for an employer reference and proof of income, such as bank statements and payslips. By telling them your mum is going to pay, you are freely admitting to having no earned income. It really isn't going be terribly difficult for a landlord to ascertain that you are not in employment, therefore will be paying your rent through LHA. It's not much of a leap even if you decide to suppress how you are actually going to pay your rent and even though it is paid directly to you without any contact with the landlord.

clutton_2

If i discovered that you had started your tenancy in one of my properties based on a lie i would be very unsure whether to renew a tenancy for you after 6 months......

i have never had more arrears since LHA came in.... never.... and there are millions of £ss owing to landlords up and down the country because of it....

other reasons why its more difficult with benefit tenants

1) LHA does not always cover the rent and tenants need to pay a top-up - they dont always bother... this can mean it is many many months before you can get them out on a Section rent arrears application.

2) it is pointless trying to increase the HB rent - as all this does is to increase a tenants top up and if they aint paying it in the first place, they wont pay an increase.

3) HB tenants rarely see the rent as "my" responsibility - and so it is an ongoing battle for me to get information from the council - even tho tenants have signed a DPA disclaimer.....

4) if LHA tenants get offered Housing ASsociation property they have to accept and move out in 3 - 7 days... hence no proper legal notice can be given and no money left in the deposit for repairs damages.....

5) LHA often not paid for 6-8 weeks - so tenancy always in arrears......

6) Deposits schemes want "settlement" of Deposit negotiations with9in 14 days.... often the rent is not up to date by that time as rent is only paid on a "payment cycle" basis to suit the council and not the landlord or tenant

7) even if a tenant's rent is paid diretly to the LL - the tenant can ask at any time for it to go to them directly....

8) LLs cannot ask for direct payment till a tenant is 8 weeks in arrears......

9) it costs £150 per court application to try to get possession and an additional £95 Bailiffs warrant....

10) judges will sometimes give benefit tenants the benefit of the doubt, and even cast iron cases have been thrown out while "a possible way forward is found" - expecially where there are children.

these reasons are without thinking about it too hard.....


need i go on ????

having said all that i do take benefit tenants... altho goodness knows why - it has just taken me 10 months.... yes 10 months ... to get one out...... she left owing £2k rent arrears, and a repairs bill of a similar amount........

and before you ask... no - all benefit tenants are not alike... but there is something in the psyche of many of them - "it aint my responsibility" - whatever the "it" is..... and that makes for difficult tenancies.....

on the other hand some of my best tenants are on Disablity allowances and are pensioners, and they are fabulous tenants.....

N79

Not to mention the fact that:

Many BTL mortgages stipulate no LHA.
Some property insurance properties stipulate no LHA.
It is impossible to insure against LHA Ts defaulting (I wonder why that is)!
LHA Ts are, on average, far needier and more likely to need a level of support than working Ts.

Etc

crystaltipps

Since going back to study full time I have been claiming HB/LHA. I have a great landlord who was very understanding about it - he thought it was great that I was trying to better myself. I have also been in the property for nearly 5 years now, paying rent, and as I am the sort of tenant that only bothers him when absolutely necessary, he also thinks I am great for that reason.

However, it took nearly 5 months of sorting with about 10 letters back and forth, in duplicate to us both. During that time, I covered the rent as usual and we had quite a few laughs over the situation. This was also because Student Finance took an age to sort out my final statement so my income was up in the air for a long time.

The point I am making, in a round about fashion, is that if I didn't have a good relationship with my landlord, combined with the ability to cover the rent until the council sorted themselves out, then I imagine I would have been looking for somewhere else to live months ago.

I feel sorry for people that struggle to find a place on LHA (I have a uni friend trying to find somewhere with her son at the moment, and it is a nightmare) because we are not all out to 'play the system'. But, my landlord has told me some awful stories about issues he has had with others on HB, and I fully understand the reluctance a lot of landlords show when faced with an applicant wanting to use HB.