Council Rent Free Holiday/Fortnight

jbond

I don't know if I am getting this wrong or not (perhaps someone will correct me here), but I've just been looking at the fortnightly rent documents, and I don't know if ALL councils send out these letters or not, but ours certainly does.
Obviously we are just a couple of months into the new year, and I'm looking at the letter that our council sent out earlier last year. It explains about the rent increase etc, but then mentions a 'rent holiday' in quotes for two weeks in December.
Rather than get a 'just ring the council' type response, is there someone here that knows EXACTLY how this is worked out. The way I'm currently looking at this is that you DONT get a 'rent holiday' at Xmas at all. All the council is doing is altering the payments throughout the year to accommodate the 2 'free' weeks, but even this I don't fully understand how they've done it. I don't like jumping to conclusions, but if I am right, then all they are doing really is conning/misleading their tenants? Why is it called a 'rent free fortnight' at Christmas, when it really isn't???

fed_up_and_stressed

I doubt it is a con ... My guess is you are paying by direct debit in which case because under the dd guarantee they have to give you 14 days notice to alter this so instead you pay the 50 weeks worth of rent over the 12 equal payments rather than 50 weeks through 11 monthly payments of higher amount and one smaller amount.

E.g. Rent £100 per week. If you were paying 52 weeks a year (ie no rent free weeks your annual rent would be £5200 aka £433.33 per calendar month

However if rent £100 and paying 50 weeks then 12 monthly dd is £416.67 per month over 12 payments ... So even though you are not getting your two weeks of paying nothing you are still getting them its just the saving is spread through the year.

davidmcn

jbond wrote: »

Why is it called a 'rent free fortnight' at Christmas, when it really isn't???

Do any landlords call it "rent free"? A quick Google suggests they only refer to it as a "holiday", and make clear that it's based on an annual rent.

It's no more misleading than the typical council tax method of collecting the annual amount over 10 payments rather than 12.

elmer

The HA that was formed when my council sold its houses gives 4 weeks per year rent free. These are definitely free weeks as we don't pay HB for them when they fall, as no rent is due in these weeks.

elmer

princeofpounds

Lots of social housing providers do similar things like this. It is basically because a certain number of people who occupy their properties live hand to mouth, and so when Christmas expenses come along they are in danger of defaulting on their rental payments.

To make this 'easier', contracts and/or payment arrangements (depending on how formal they want to make it) are often structured in such a way that there are lower payments around Christmas time (and higher payments the rest of the time).

Yes, it's a load of nonsense in some respects. But it can also help reduce financial distress for people who aren't always that good at planning their own finances. That is good for both the housing provider and the tenant, even if it is rather patronising.