Where is best value to rent when getting the new LHA

dmg24

chickmug wrote: »

Yes I realise this but when I read an article, in my local paper, where a couple said they were being forced to consider living elsewhere where they felt their HB would get them a better home I started looking. However you are right in that my findings showed it was relative rent to the LHA in that area so that is not the way forward for me.

What is that expression "Thinking outside of the Box". I hate it but a trying to do just that but the issue is a major one in society. What doesn't help in this area is the huge number of place bought as holiday homes.

I would also consider the expression 'Don't believe everything you read'. The people in the article you read have no more expertise than you or I, and would inevitably find they would be in the same situation wherever they were.

I have moved away from Nottingham twice, once to Skegness (loved it!) and once to London (not for me, people aren't friendly!). For obvious reasons the work I was doing in Skegness paid considerably less than my employment in London. However, even though I was better off (on paper) in London than in Skegness, my money only went as far as it did in Skegness. This would be the same if you are using HB or LHA to pay for your housing as opposed to your salary.

With regard to 'thinking outside the box', or indeed outside your town, the only way that you would be better off would be to move outside of the UK (which often seems an attractive idea!).

philip

I'm a landlord(apologies all round).Not studied the new rules in full but the first point I would make is that not all landlords are b******s.I like to think I am fair etc etc.
From what I can see of the new rules benefit will only be paid to landlords in exceptional circumstances from now on.
Have never taken on tenants on benefits, but one or two have gone onto benefits after and as they have been good tenants I have carried on with them. Had no real problems with HB.
From now on I am going to be very careful about vetting tenants as I do not like the look of the new LHB at all.Apart from above comments,it does seem to me that the net effect will be in most cases new tenants will have their housing allowance reduced. In the area that I live there appears to be a significant discrepancy between rents and new housing benefit rates.
I am afraid the loser is likely to be the tenant.

PasturesNew

chickmug wrote: »

I have carried out some detailed looking into the pilot areas and find the amounts is well well short of the LHA.

I had a quick look at two pilot areas:

Conwy - poor - http://www.conwy.gov.uk/doc.asp?cat=806&doc=988&Language=1

And

Guildford - posh - http://www.guildford.gov.uk/NR/rdonlyres/6BEEBCC3-46C4-43F3-830B-09DC15DBB5EB/0/23June06ConfirmedGuildfordLALHAsheet.xls (excel spreadsheet)

I then used Rightmove to search for properties from a single person over 25's perspective. A single person over 25 can live in a 1-bed flat. Looking just the once on Rightmove (not the cheapest place to search for places) I found that in both cases the LHA would cover the cost of a studio flat, with the chance that a few quid could be pocketed (you are allowed to keep up to £15/week if the rent is less than the LHA paid out.

I suspect therefore that with a bit of digging around (spending more than a 2 minute quick search) it would be possible to find a few places to rent within the allowable amounts. Obviously people on LHA won't be living in the lap of luxury, but why should they be when people working for a living can't afford to. I think for the majority of people it will make them value the amount being spent on rent more now.

The Rent Service will update the LHA amounts monthly. I expect the first LHA amounts to be published at the last minute, so probably ON Monday 7 April.

PasturesNew

jac/norm wrote: »

Not everyone on benefits are bad tenants. We are on benefits and have been in our private renetd house for 3 years now and in that time we have installed a new kitchen, bathroom and new front door along with decorating through out and new floors.

Why on earth would you do that?
Those things cost a fortune.
You could be booted out with just 2 months' notice.

jacnorm

Because its our home. My eldest son has his own firm of builders and he does all the work for us which means it does not cost anywhere near what you would expect to pay.

suelees1

There is often a shortfall now between HB entitlement and rent payable and it's always been the tenants' responsiblity to pay this directly to the landlord. In these cases tenants can always apply for Discretionary Housing Payments. This will not change with the new LHAs.

Our local authority has set up a 'LHA Safeguards group' with interested outside agencies. We've all accepted we'll have vulnerable tenants who might not make regular payment to the landlord and so we'll be advising and helping them to apply to the LA to pay HB directly to their landlords.

We've seen a lot of knee jerk reactions from certain landlords who have stated they'll have a blanket policy of giving notice or not allowing benefit recipients to apply for a tenancy in future.

Our LA also invited local landlords to sessions to discuss the new rules and hopefully allay some fears. Guess what...very few have expressed any interest whatsoever! This indicates to me most don't give a monkey's about putting a roof over someones head. It's just about making money (sorry - politics again - I'll shut up now :cool: ).

Chrysalis

The prejudice against benefit tenants isnt helped by solicitors giving advice to landlords and insurance companies. My sister who may soon be a landlord herself was told by a solicitor to stay away from people on benefits without saying why she just said to not allow them.

Also credit checks my sister was saying she has been told they will be law next year if this was the case effectively anyone with a bad or non existing credit rating would be excluded from the private rental market.

suelees1

I can see where you're coming from Chrysalis. Solicitors are supposed to advise their clients on the law and not to give their own subjective opinion. It seems your sister was at the receiving end of this solicitor's personal gripes about tenants on benefits and not about the actual law.

Mind you it's often hard to be non judgemental. In our welfare dept we advise and represent only the tenant and we can often be heard muttering under our breath about "the other party"!!

I keep falling into the politics trap and must stop (for the second time today in this thread).

peter999

suelees1 wrote: »

We've seen a lot of knee jerk reactions from certain landlords who have stated they'll have a blanket policy of giving notice or not allowing benefit recipients to apply for a tenancy in future.

Our LA also invited local landlords to sessions to discuss the new rules and hopefully allay some fears. Guess what...very few have expressed any interest whatsoever! This indicates to me most don't give a monkey's about putting a roof over someones head. It's just about making money (sorry - politics again - I'll shut up now :cool: ).

And those fears will magically disappear once the new system is up & running & landlords are getting the money.

peter999

char_student

I think LHA is a joke!

I already get HB and it works out good for people who come onto LHA after 7th April but BAD for people who are already on it.