The RLA have reported that on a circular sent by the DWP states, “Landlords can refer rent arrears cases to Universal Credit; those which are under 2 months rent will trigger Universal Credit to contact the claimant to discuss their non payment as part of the Personal Budgeting Support process, where as those with over 2 months arrears will be switched to direct rent payment automatically and relevant budgeting support activity arranged subsequently.”
This appears to signify that two months of arrears will automatically trigger a with to payments direct to the landlord. This sounds like some kind of recognition of common sense and the reality of the situation, taking over from politicised dogma. Thank goodness.
Landlords fear of housing benefit payments been mismanaged by tenants resulting in rent arrears might well be avoided. But this policy has not been confirmed and still might not be there for the national launch. We can all just hope the Government has woken up to the potential disaster of millions in rental arrears that could result from these new reforms, as highlighted by the experiment of direct payments in Southwark.
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ReplyDeleteI am a landlord with 20 plus properties, all are Housing Benefit tenants. DO NOT trust the HB benefit dept to think about you. MAKE SURE your tenancy agreements are watertight. Also make out a separate contract maybe in regards to their tenants responsibilities and their payment of rent in a timely manner and penalties of £30 for each time they are late by 3 days. Sad as it is but in your head you have to think that they will divert (sorry steal) the HB payments UNLESS you let them know that it is stealing and you will call the police if they steal the rent. Things have changed folks, my rent receipts are down by around 15% but I now pursue every tenant in court for non payment and attach their future earnings. I have got rid of the nightmare spongers and now make my tenants know that I will evict them for non payment but will give them new boilers, paint out, and treat them with the utmost respect. TIMES HAVE CHANGED - SO DO WE.
KEV