Please Help Landlords or estate agents that accept housing benefit

dseventy

poppasmurf_bewdley wrote: »

All companies or some companies, or just one company?

At the height of the BTL boom is was most (if not all) insurance brokers/companies that put the clause in.

poppasmurf_bewdley wrote: »

Can you give us the names of these insurance companies which discriminate against tenants on benefits as opposed to those who do not?

Natwests BTL mortgage product have the clause, as do A&L at the moment (according to brokers).

poppasmurf_bewdley wrote: »

I assume you are talking about buildings insurance as opposed to contents insurance, which the tenants themselves are normally responsible for.

Yes its buildings insurance.

What you are forgetting or not realising is that LHA tenants cannot pay their rent themselves and require someone else to pay it for them (ie the state). That usually means that they have low/no income and hence are more likely to get into arrears.

Hence it also means that they are a greater risk.

They must adhere to certain eligibilty criteria to be paid it, and are also subject to changes in benefit policy (like the recent 30th percentile change).

It was much easier years ago when HB was paid direct to the LL, with the recent change to give it to the claiment, I then stopped renting to people who rely on others to pay their rent.

I don't get why LHA tenants don't understand this.

You can't pay your own way, you rely on others, hence more risk.

D70

FBaby

Why do car insurance often give discounts to female drivers, or those over 50? Is it discrimination? Insurance spend plenty of money to do research on 'risks factors'. If they consider there is more risk of a claim with tenants who are not employed, that's their right to charge more.

I can confirm that all the insurance I got quotes from asked the question whether tenants were employed or not (rather than in receipt of HB or not).

nikki1520

And it's also a condition of a lot of btl mortgages that the house is not rented to housing benefit claimants

poppasmurf_bewdley

Well, thanks for the info.

I learnt something new today. It's something I'd never come across before and it's something I'd never realised.

Fiver29

dseventy wrote: »

At the height of the BTL boom is was most (if not all) insurance brokers/companies that put the clause in.




Natwests BTL mortgage product have the clause, as do A&L at the moment (according to brokers).




Yes its buildings insurance.

What you are forgetting or not realising is that LHA tenants cannot pay their rent themselves and require someone else to pay it for them (ie the state). That usually means that they have low/no income and hence are more likely to get into arrears.

Hence it also means that they are a greater risk.

They must adhere to certain eligibilty criteria to be paid it, and are also subject to changes in benefit policy (like the recent 30th percentile change).

It was much easier years ago when HB was paid direct to the LL, with the recent change to give it to the claiment, I then stopped renting to people who rely on others to pay their rent.

I don't get why LHA tenants don't understand this.

You can't pay your own way, you rely on others, hence more risk.

D70

Because the vast majority don't get into arrears and are just as reliable as non LHA tenants

dseventy

Fiver29 wrote: »

Because the vast majority don't get into arrears and are just as reliable as non LHA tenants

Rubbish.

Don't take my word for it though.

Read what Shelter have put together :

http://england.shelter.org.uk/__data/assets/pdf_file/0003/236352/For_Whose_Benefit.pdf

Please read it before posting another comment like : Because the vast majority don't get into arrears and are just as reliable as non LHA tenants

D70

Fiver29

dseventy wrote: »

Rubbish.

Don't take my word for it though.

Read what Shelter have put together :

http://england.shelter.org.uk/__data/assets/pdf_file/0003/236352/For_Whose_Benefit.pdf

Please read it before posting another comment like : Because the vast majority don't get into arrears and are just as reliable as non LHA tenants

D70

So a small sample survey, with only a 20 % response rate is gospel now. Back in the real world.....

ETA: BTW, you did read your own link didn't you? 70% always pay rent on time, 10% often fall behind with payment.

Now what was it I said about the majority?

xxmatt1980xx

So if BTL mortgages have a clause in that the landlord must not rent to a HB recipient how does that work if a tenant loses their job whilst in the property. Would the landlord *have* to evict them? Surely that's not legal...

alta

poppasmurf_bewdley wrote: »

All companies or some companies, or just one company?

Can you give us the names of these insurance companies which discriminate against tenants on benefits as opposed to those who do not?

I assume you are talking about buildings insurance as opposed to contents insurance, which the tenants themselves are normally responsible for.

Almost all insurance companies use this clause, as do many mortgage companies.

Also any letting agent worth there weight, will have a formality that consists of a reference fee, and then a reference form which will ask your employment status, if you lie an the reference company contacts the said employer and it is found to be a lie, not only will you loose your referencing fee, and could be charged with fraud, take a look at all the good referencing companies, it is there in black and white.
best thing is to ask the agent to put your case to the Landlord. If you are on top-up benefit you stand a better chance than total benefit.

Good luck, and remember the agent is only carrying out the landlords instructions. at the end of the day , its his house and he can say what he wants and doesn't want in there, no kids, no smokers, no dogs, no HB, no students. and depending on the area you live, if there is a lot of renters because of the house costs, London! then he can be as picky as he likes.