10,000 tenants behind with their rents

ukcarper

IveSeenTheLight wrote: »

Be careful when you compare the cost of rent as you need to consider the cost of mortgage interest.

That said, there are some areas that are higher than their 2007 peak as I understand.

I understand that but the longer you put off buying the longer you will rent and in general the less time you will be mortgage/rent free.

IveSeenTheLight

ukcarper wrote: »

I understand that but the longer you put off buying the longer you will rent and in general the less time you will be mortgage/rent free.

Of that I can agree.

Of course the counter to that is that if people are able to save the difference between mortgage interest and mortgage repayment then there is no difference, ASSUMING there is no increase in nominal value.

The-Joker

IveSeenTheLight wrote: »

Be careful when you compare the cost of rent as you need to consider the cost of mortgage interest.

That said, there are some areas that are higher than their 2007 peak as I understand.

Also the cost of upkeep tax and potential void periods/bad tenantants court fee's trying to evict them .............

wymondham

I honestly don't know the answer to this one so please excuse me .... what happens if a tenant in a H/O/ Council House falls behind in rent? As the council is obliged to house is this just forgotten about???

chucknorris

The-Joker wrote: »

Also the cost of upkeep tax and potential void periods/bad tenantants court fee's trying to evict them .............

Upkeep? That is paid for out of the tenant's rent.

Tax? Wish I paid millions every year, you only pay tax on profit.

Voids? I've owned an average of about 4.5 properties for over 20 years and the only voids that I have experienced were self induced for refurbishment or a few days decorating between tenants.

Court fees? Only once, the tenant had to pay everything that I asked for (incl the court fees) plus 8% interest.

The-Joker

wymondham wrote: »

I honestly don't know the answer to this one so please excuse me .... what happens if a tenant in a H/O/ Council House falls behind in rent? As the council is obliged to house is this just forgotten about???

They get housed somewhere else and get red letters for a year or two then it is written off as is the rest of their debts.

Wi88le

This should start getting a little more interesting as universal credit takes hold.

The-Joker

wi88le wrote: »

this should start getting a little more interesting as universal credit takes hold.

but when will that be they keep postponing it. It is going to cause rents and house prices to go down so it will be postponed again for as long as possible.

sjaypink

wymondham wrote: »

I honestly don't know the answer to this one so please excuse me .... what happens if a tenant in a H/O/ Council House falls behind in rent? As the council is obliged to house is this just forgotten about???

Court proceedings are issued, same as private tenants. Either repayment plans are put in place and they are allowed to stay, or they are evicted, again same as private tenants.

The council are not obliged to rehouse them. They LA are though obliged to assist them in finding a new property if there are children or vulnerable adults in the household. This can include referring them to a private landlord, putting up a deposit, arranging emergency bed and breakfast, or asking another housing association to take them on.

They will have a judgement against them for the unpaid rent, and that will be chased for it, just the same as a private tenant.

The problem is that for people on a low income, no assets, and in debt, there is very little any creditor can do to get all their money back. I think HAs prefer to let people who've fallen behind on their rent stay in the property, because of course then they've got some control over demanding repayments. Once a tenant has moved out, you then need to keep track of them for the next 15 years - or however long it will take them to pay back the debt at a rate of £2 pcm.

Wi88le

The-Joker wrote: »

but when will that be they keep postponing it. It is going to cause rents and house prices to go down so it will be postponed again for as long as possible.

I think the delays are due to implementation issues rather than political or economic reasons.

Pilot areas saw massive increase in arrears.

Arrears will be affected, rents and house prices may or may not be significantly effected due to this... I'll expand on this later...