Housing Benefits - Feel discriminated??

Jules1976

I'm interested to hear other peoples thoughts, both landlords and tenants, on "HB" and the label that appears to be attached to those who receive it. This is a new process to me and following a recent split I am in the position of looking for a new home to rent. I have a one year old and am in a steady job, albeit part-time at the moment (due to said one year old!). It appears most landlords refuse tenants who receive HB and it seems this is because the government no longer pay direct to the landlord and there is some question mark whether the money received by the tenant would be used for rent. I am astounded that a) the government would change what seems to be a sensible process b) that landlords can refuse point blank, in my case, the "ideal tenant" who will pay on time every time, won't trash their property and is a decent, hard working person. Who's to guarantee that another tenant who is not receiving HB will pay anyway and look after their property? If the government are willing to help me financially towards my living costs of course I'm going to gratefully accept, who wouldn't? But why are the likes of me being discriminated against and judged before being tried?

Jowo_2

There are a whole host of reasons why HB claimants are considered less desirable than other tenants, usually relating to the fact that they are a higher risk. It's easier for a landlord not to consider a claimant than try and pick one who they think can manage their low income without getting into arrears.

Landlords know it is pointless to try and chase a claimant for arrears whereas someone in employment has less risk of getting into arrears and more chance of securing successful enforcement action with them.

HB claimants are also notorious for being harder to evict as a local council will instruct them to ignore the notice served by a landlord, forcing them to take them to court and get a court order - were you aware of that?

A landlord can select who they like on economic grounds, so long as they don't discriminate by sex, race and disability in choosing their tenants.

The govt changed the payment policy to encourage tenants to take personal responsibility for their budget. The govt was explicit about the need for tenants to take control of their income, seeing it as a basic step in becoming more self sufficient and employable.

Can you offer a guarantor? Many landlords don't accept claimants, of those who do, many will demand a guarantor.

twinkle1981_2

I think it has to do with the fact that many local authoritys take weeks to sort HB claims out, resulting in the landlord have to wait weeks for the rent. But I agree it is really frustrating when looking for somewhere to rent when 'no dss' is stated everywhere and it does come across as discriminatory.

I have just been made redundant and had to claim HB myself, but I was given the option to have the rent paid directly to my landlord which is defiantely the best option, whats the point in having it paid to you, and then you having to pay it to the landlord. Far easier the landlord recieves it direct.

Jowo_2

twinkle1981 wrote: »

I think it has to do with the fact that many local authoritys take weeks to sort HB claims out, resulting in the landlord have to wait weeks for the rent. But I agree it is really frustrating when looking for somewhere to rent when 'no dss' is stated everywhere and it does come across as discriminatory.

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But, from a landlord perspective, it is also frustrated by the fact that some claimants (particularly under the old system of HB before LHA was introduced) don't take responsibility for chasing up their claims or applying for an interim payment. They see their rent arrears as very much a problem between council and landlord.

rainbow81

There is definite discrimination - I am on HB and when my ex left me it was very stressful trying to get my current landlady to let me and my son stay! Thankfully she did and the HB was paid directly to the letting agent.

There were many mistakes with the payments and I had the letting agents chasing me for money that the council said they had paid. Since the HB has come directly to me it has been much simpler, even though HB is paid fornightly and the rent is monthly I manage this by watching my budget.

I hope I won't have to move until I have a "proper" job.

If you do have work why do you need to tell letting agents that you are on HB, just out of interest? Do references from past landlords count for anything (selfish question!) ?

Welshwoofs

Speaking as a Landlord, I don't discriminate against HB tenants however I do still expect a deposit and I do still expect the rent to be paid on time, per calendar month because the mortgage payments certainly don't get suspended just because a tenant doesn't meet their rent obligations.

The unfortunate case with a lot of HB tenants is that they come to you with no deposit and as Jowo says, then don't chase up their claim, leaving the landlord without any rent for months in some cases. If an HB tenant shows personal responsibility instead of expecting me to chase up their claims then I have no problem taking them on.

AnxiousMum

In alot of cases, HB doesn't cover all of the rent. With changes to LHA payments coming next month, there will be even more households where the LHA payment doesn't cover the rent. I don't think that it's unreasonable for a private landlord to request a guarantor from someone who is unable to ensure that the rent will be paid from an adequate income - but personally, I'd go alot by the individual concerned rather than the source of income.

We have rented previously two different houses, one who was self employed with a business in the town - and she was the worst at paying rent I think there could be. Another one just totally trashed our family home in Canada - but they did pay their rent. When they'd done more damage than they cared to live in, they just up and left. They were a working couple.

real1314

rainbow81 wrote: »

There is definite discrimination

Of course there is, and it's both legal and justifiable. If you were lending money out, would you lend it to:-

1. A person in full time work, with a reasonable income, against whom you could take legal action and apply an attachment of earnings

2. A person on low income benefits, with limited prospect of any useful legal action, at best only being able to obtain repayments at £4 or £5 a week?

It's a no brainer. People in work have more income and more to lose (attachments of earnings often come with an emplyers admin charge, and emplyers might see them as a black mark against the employee), and they are easier to recover money from.

One group presents a greater risk, therefor they are less likely to be accepted. Get a guarantor who has their own home and a full time job and you've a better chance.

DaisyFlower

Lots of mortgages and insurance policies excluding housing benefit tennants based on statistics and risk so its not just landlords. Its not discrimiation but worked out like any other insurance risk.

From a landlords point of view, having a tennant who works and is able to pay the rent is much better than one who doesnt/works little and needs state assitance. HB can be delayed, stopped at any point etc and its the landlord not the tennant who suffers. At least with an employed person wages are consistent and they have an income to deduct from or take to court if they fail to pay.

Wear and tear can also be more if HB as the tennant is likely to be in the house more due to not working etc.

You could always up your hours so as not to need HB if you are being resticted on houses. Lots of mums return full time with young children and use childcare.

giraffejoe

Why do you have to disclose to a potential L/L that you are applying for HB? I work in HB and it is your choice whether we can discuss your claim with your L/L.

By the way I have never heard of anyone in my department "instruct them to ignore the notice served by a landlord, forcing them to take them to court and get a court order". There is a separate section called Housing Advice who will give the tenant their legal rights but that is available to everyone.

DaisyFlower

giraffejoe wrote: »

Why do you have to disclose to a potential L/L that you are applying for HB? I work in HB and it is your choice whether we can discuss your claim with your L/L.

If you fail to disclose it and the landlords insurance forbids tennants of this nature what happend when there is a fire and the property badly damaged? I actually cant believe anybody who works in HB would advise people to not disclose it.

Its obvious from credit/employment checks etc if somebody is claiming HB anyway.