Is Universal Credit forcing rent reductions on landlords?

Is Universal Credit forcing rent reductions on landlords?

10:29 AM, 21st October 2024, About 3 weeks ago 15

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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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Lynette Horan

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7:26 AM, 22nd October 2024, About 3 weeks ago

Unfortunately UC only cover a certain amount of a tennants rent if it is a private landlord but they generally do cover the full rent if it's housing association or council

The Forever Tenant

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14:35 PM, 22nd October 2024, About 3 weeks ago

UC will pay all of a private tenants rent, if it is at or under the housing benefit amount for that property type in that area.

The likelihood as to why they cover all of housing association or council rent is because those rents are generally lower than private.

Old Mrs Landlord

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8:26 AM, 26th October 2024, About 3 weeks ago

Reply to the comment left by Lynette Horan at 22/10/2024 - 07:26And if it's a flat they cover service charges too! Just another example of the way private landlords are victimised by government rules. As you say, you are only the evil landlord who has put your own savings into housing people more properly housed by the local authority. I sympathise, having been in this same trap for many years. The truth is these tenants are being subsidised by us/you and our/your other tenants. It's up to you whether you are prepared and can afford to make the sacrifice or if you give the tenants notice. We all know what the Build-to-Rent outfits will do. However, I would say you have been lucky to be in an area where LHA rates have hitherto approximated to market rents.

Richard Hand

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15:41 PM, 26th October 2024, About 3 weeks ago

Reply to the comment left by John Parkinson at 21/10/2024 - 15:21
Sadly, John is right. The only sensible thing to do is serve a section 21 and evict the tenants. Actually they should be grateful as with their various disabilities they should be in priority need, & are not intentionally homeless (as you served notice) and should get a subsidised social housing flat to meet their needs longer term.

I had to do same for my tenants. As they were also of pension age they got rehoused in a nearby retirement complex within weeks. No court proceedings required.

Better get a move on though as the sun sets on this option pretty soon.

GlanACC

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19:13 PM, 27th October 2024, About 2 weeks ago

Don't take UC tenants, plenty of other tenants to choose from

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