Local Housing Allowance & Renting in the Private Rented Sector

Mnoee

I've often found that landlords will accept tenants on benefits more readily if you have a guarantor with a job and mortgaged/owned property. It's quite a big risk for the guarantor (as they're legally liable your rent if you don't pay), but if you have a family member or close friend who might be able to help with that, it may be useful to ask if they'd be willing to. 

David2710

ripplyuk said:

David2710 said:

ripplyuk said:

‘No DSS’ basically means they don’t want tenants on benefits. Some landlords really mean they don’t want those who are unemployed while others will refuse those who receive LHA, even if they are working. 

The landlord will not be remotely interested in how much LHA you get. The letting agents will ask but the fact that you get LHA at all will make it harder to find a house. Keep in mind that the LHA almost never covers the full amount of rent so you will need to top it up yourself, often by a significant amount. 

Thanks for the reply. A few points if I may. Why would landlords not be "remotely interested" in what is pretty much a guaranteed income? Much safer than say an employed couple during the pandemic imho. Yes I can understand the reasoning if there's a clause in a Btl mortgage for instance, but as far as I'm aware most banks/lenders have subsequently withdrawn the clause due to media pressure and legal precedent. Finally I agree many rental properties far exceed the max LHA but many are well below the LHA max. Thanks for the advise but unless your reasoning is based on discrimination (against people on benefits) I don't see the logic from a landlords perspective.

Most landlords don’t see it as a guaranteed income. For a start, there’s no guarantee that you will give that money to the landlord at all. Your LHA goes to your account (apart from some limited circumstances) and you can spend it as you please. Much of the reluctance to have ‘DSS’ tenants is simple prejudice and snobbery. There’s a misconception that ‘professional’ people will take better care of the property but there’s also other reasons like the belief that it will be much harder to evict a tenant who is on benefits, as they will hold out for council housing. Some landlords prefer people who are out at work most of the time as they think it reduces wear and tear. 

Thanks for clearing that up and for your honesty. I understand tenants can now instruct the DWP to pay rent direct to the landlord. In my case I can pay 6 months in advance but there's always a risk the landlord could do a runner and hand the keys back to the lender. The risk is not a one way street. I agree with you, "much of the reluctance is simple prejudice and snobbery". 

David2710

elsien said:

It’s also got worse since the advent of UC.
The different assessment and run in periods (for example with working people where two months wages fall into one assessment period) and the delays in getting paid in the first place has meant that more people on UC have had issues paying their rent than they did on housing benefit. Often through no fault of their own, but it has made landlords understandably more cautious. 

It's always been difficult with credit checks, references and the affordability criteria but I agree, UC and the delay in payment has made the situation much worse. This and the previous Tory government are offering lots of help and tax breaks for first time buyers but that help is usually directed at those who can already afford private rented accommodation. I think the Help to Buy scheme is for 'affordable' properties up to £450k. While there's little or nothing for those at the bottom of the income scale or for tenants on sickness benefit.   

theartfullodger

David2710 said:

..

OK thanks for clearing that up, most helpful. From that answer it appears there are no reasons I cannot view a property and be fairly confident my application would be successful subject to credit checks and references. Obviously there's no knowing what the future holds in an upcoming budget but if in the unlikely event LHA is reduced I can always move to a less expensive area. Dishi Rishi is not going to want to upset red wall voters so it's more likely he'll increase LHA than do anything silly imho.  Thanks again.   

Viewing yes IF landlord/agent permit you to.  Probably many won;t due to your circumstances

Application successful? Only if there's nobody else with a more attractive application ...

Tories not handling the north correctly? Would have thought that's a racing certainty. 

Increase LHA?? Dunno, but the chancellor needs to reduce spend and raise more taxes to pay for Covid & Brex**** so....

Murphybear

David2710 said:

Murphybear said:

My husband and I were looking for a rental 3 years ago.  We were both retired and eligible for some LHA.  What was interesting is that one big agency said “no DSS doesn’t apply to retired people”.  We found this attitude quite common.  There is a massive difference between being unemployed and not working but having a guaranteed income ie pension(s).  One agency told us that ~ 70% of their tenants were retired.  We were looking mainly in rural Devon.  

What we did find was that there were a number of suitable properties that were affordable even without claiming LHA.  We also found that the perception of letting agents/landlords was that retired people would be more settled than younger ones and not start a family.  One actually said to us “you don’t look like you’ll have wild parties”.  

hope this helps 

Thanks for that, most interesting. Having just turned 60 I have a few more years yet before I can rest easy in regards to renting in the private sector. I did enquire at my local council whether there are any schemes for the over 60's on ESA but haven't received a reply as yet. Incidentally I have been on the councils housing list for over a decade but because I live in a private rented property I am not considered a priority,. It's a catch 22 situation and if I took the councils advice, to move up the priority list, I would have to be forcibly evicted, I presume by not paying the rent for 6 months.  They would then probably place me in temporary accommodation, maybe a hostel or a B&B for months if not years and my credit history and landlord references will be shot to pieces. It's a complete nightmare in the making so I am sticking to the private rented sector for now at least. 

Unfortunately if you are evicted for deliberately not paying the rent for 6 months the council will deem you to have made yourself intentionally homeless and not house you.

I have one idea which may help you.

There are some very good Housing Associations around that have properties for the over 55s/60s.  We live in one.  The HA is a registered charity and as such charges reasonable rents and maintenance charges.  We have just had our review for next financial year and it is actually slightly less than last years.  There are 33 self contained flats and one house in our complex and we have a massive communal lounge with its own kitchen.  The words “wild” and “party” are not exactly unknown.  

When we moved in 3 years ago they didn’t ask for references or a deposit which was helpful.  If there are any plumbing problems they are sorted out with a speed you wouldn’t believe possible.  Ours are let independently, not through the council.  

LHA is welcomed and many tenants claim it.  There is also security of tenure, you have a normal AST for one year then an Assured Tenancy for as long as you want it.  

freesha

Avoid anything that says "DSS". If they are 20 years out of date on that, what else are they not up to speed on?

David2710

Mnoee said:

I've often found that landlords will accept tenants on benefits more readily if you have a guarantor with a job and mortgaged/owned property. It's quite a big risk for the guarantor (as they're legally liable your rent if you don't pay), but if you have a family member or close friend who might be able to help with that, it may be useful to ask if they'd be willing to. 

No I don't have a guarantor or someone who will provide a personal reference. That's part of the problem. Of course landlords will let to tenants with a guarantor because if rent isn't paid for whatever reason they can threaten to sue the guarantor and the equity in their home. The problem it seems is that most private landlords tar all benefit claimants with same brush.  

David2710

theartfullodger said:

David2710 said:

..

OK thanks for clearing that up, most helpful. From that answer it appears there are no reasons I cannot view a property and be fairly confident my application would be successful subject to credit checks and references. Obviously there's no knowing what the future holds in an upcoming budget but if in the unlikely event LHA is reduced I can always move to a less expensive area. Dishi Rishi is not going to want to upset red wall voters so it's more likely he'll increase LHA than do anything silly imho.  Thanks again.   

Viewing yes IF landlord/agent permit you to.  Probably many won;t due to your circumstances

Application successful? Only if there's nobody else with a more attractive application ...

Tories not handling the north correctly? Would have thought that's a racing certainty. 

Increase LHA?? Dunno, but the chancellor needs to reduce spend and raise more taxes to pay for Covid & Brex**** so....

Thanks again. That's exactly the reason why I'll probably apply as an employed or self-employed person. Did it before and looks like I'll have to do it again. Not that difficult to do either. Other people I know simply use false references because the letting agency doesn't really care as long as the applicants credit score is adequate. Like I said I've been in the current property for over 5 years and have never missed a rental payment even during this pandemic, unlike furloughed employees who have withheld rent. As someone said in this thread it's more about prejudice and snobbery than the ability to pay the rent.  

David2710

Murphybear said:

David2710 said:

Murphybear said:

My husband and I were looking for a rental 3 years ago.  We were both retired and eligible for some LHA.  What was interesting is that one big agency said “no DSS doesn’t apply to retired people”.  We found this attitude quite common.  There is a massive difference between being unemployed and not working but having a guaranteed income ie pension(s).  One agency told us that ~ 70% of their tenants were retired.  We were looking mainly in rural Devon.  

What we did find was that there were a number of suitable properties that were affordable even without claiming LHA.  We also found that the perception of letting agents/landlords was that retired people would be more settled than younger ones and not start a family.  One actually said to us “you don’t look like you’ll have wild parties”.  

hope this helps 

Thanks for that, most interesting. Having just turned 60 I have a few more years yet before I can rest easy in regards to renting in the private sector. I did enquire at my local council whether there are any schemes for the over 60's on ESA but haven't received a reply as yet. Incidentally I have been on the councils housing list for over a decade but because I live in a private rented property I am not considered a priority,. It's a catch 22 situation and if I took the councils advice, to move up the priority list, I would have to be forcibly evicted, I presume by not paying the rent for 6 months.  They would then probably place me in temporary accommodation, maybe a hostel or a B&B for months if not years and my credit history and landlord references will be shot to pieces. It's a complete nightmare in the making so I am sticking to the private rented sector for now at least. 

Unfortunately if you are evicted for deliberately not paying the rent for 6 months the council will deem you to have made yourself intentionally homeless and not house you.

I have one idea which may help you.

There are some very good Housing Associations around that have properties for the over 55s/60s.  We live in one.  The HA is a registered charity and as such charges reasonable rents and maintenance charges.  We have just had our review for next financial year and it is actually slightly less than last years.  There are 33 self contained flats and one house in our complex and we have a massive communal lounge with its own kitchen.  The words “wild” and “party” are not exactly unknown.  

When we moved in 3 years ago they didn’t ask for references or a deposit which was helpful.  If there are any plumbing problems they are sorted out with a speed you wouldn’t believe possible.  Ours are let independently, not through the council.  

LHA is welcomed and many tenants claim it.  There is also security of tenure, you have a normal AST for one year then an Assured Tenancy for as long as you want it.  

Many thanks for that. I'll definitely check it out with my local authority. 

David2710

freesha said:

Avoid anything that says "DSS". If they are 20 years out of date on that, what else are they not up to speed on?

There are actually quite a few properties on Zoopla and Rightmove with the words "DSS enquiries welcome". The only problem is they are usually not in very good condition or are more expensive than they ought to be. Maybe my last resort perhaps but I'll look at other options first.