Is Universal Credit forcing rent reductions on landlords?

Is Universal Credit forcing rent reductions on landlords?

10:29 AM, 21st October 2024, Less than a minute ago 4

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Has anyone else come across this, if so is there any way to fight it?

I’ve had a property in Kent for some 20+ years, let to the same severely disabled tenant and family. To date the rent has been covered by housing benefits and I have kept rent increases within the boundaries that mean it’s been covered 100%.

Recently they have been moved across to Universal Credit, who seem to be on a mission.

For the property concerned:
Average local rent value is £1250 per month
Rent being charge is £1070pm, (accepted as reasonable by the council rent officer).
Maximum Universal Credit will pay is £940 per month.
So £300+ away from reality and £130 away from what is needed.

Given the reductions in other areas that UC have caused, there is no way my tenants can make up the £130 per month. UC will not alter their figure, Citizens Advice say this is the way things are and there is nothing that can be done.

It does seem that UC is being used as yet another weapon in the war against landlords. Once the changes discussed elsewhere, about having to accept benefit tenants etc, get enforced, the government will have a lovely way to rent cap without ever having said a word about it.

Thanks,

Tim


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Comments

Cider Drinker

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9:07 AM, 21st October 2024, About An hour ago

LHA should only fully cover 30% of the rental properties in a BRMA. If your property is worth more than the cheapest 30% of properties then it’s reasonable that the rent is higher than the LHA.

Of course, data for LHA was gathered in September 2023 so it’s also reasonable for the rent to be higher than LHA for even fewer than 30% of the rental properties in the area.

The best thing to do is to ignore LHA and charge the reasonable rent for the property.

Jill Church

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10:51 AM, 21st October 2024, Less than a minute ago

If housing benefits were covering full amount of rent before and now UC limiting amount it will pay, tenant should be eligible to claim a "discretionary housing benefit" from local council to make up some if not all, of the rent.
Tell them to apply.

Jon

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10:53 AM, 21st October 2024, Less than a minute ago

There should be some options for additional financial support for the family with this - you will ideally need Citizens Advice, or Shelter to work with the tenant and family, otherwise you will just get a 'No' from The Council but there are several additional financial possibilities to explore.
Good luck with this.
Jonathan

Tim Rogers

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11:00 AM, 21st October 2024, Less than a minute ago

Reply to the comment left by Jill Church at 21/10/2024 - 10:51
The application has been made and is working its way through the system. However the Tenant has been warned that it can only be applied for a limited period, a few months, not permanently.

As I'm the 'evil landlord', the council won't discuss the issues, until written authority is granted by the tenant, something else that is working its way through the system.

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