Landlord criticises policies for pushing tenants into homelessness

Landlord criticises policies for pushing tenants into homelessness

9:09 AM, 14th August 2024, About 4 months ago 13

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A landlord is blaming selective licensing and universal credit errors as a “recipe for disaster” that are causing tenants to become homeless.

According to government data, landlords asking tenants to move out is the leading cause of homelessness in Nottinghamshire.

Mick Roberts, one of Nottingham’s largest landlords for housing benefit tenants over the past 27 years, says policies like selective licensing are creating the problem and leaving many landlords with no choice but to sell up.

Main drivers of homelessness

According to the government figures, 639, people in Nottinghamshire successfully applied for help from their local authority to stop them from becoming homeless between January and March 2024.

Figures show that nearly half of those Nottinghamshire people who needed help in the first quarter of the year were losing their privately rented homes. In 199 of these cases, the landlord wished to sell or re-let the property.

Denis Tully, chief executive of support charity Emmanuel House, told Nottinghamshire Live: “This has been one of the main drivers of homelessness we’ve seen. As mortgages have gone up, many landlords have left the sector or kicked their tenants out so they increase rent. It’s been acute since the cost of living crisis.

“This often affects families with children, who the council has a statutory duty to house. Unfortunately, this need for emergency housing just makes property even more scarce. Nottingham has a low-wage economy but is the most expensive place to rent in the East Midlands. The average rent is £1000 a month, and as high as £1300 in some areas.”

Anti-landlord stance making tenants homeless

Mr Roberts argues that an anti-landlord stance is making many tenants homeless.

He told Property118: “It’s not surprising to see the figures. We have selective licensing causing homelessness and universal credit payment inconsistencies creating a recipe for disaster here in Nottingham.”

Mr Roberts adds that universal credit problems are causing chaos for landlords and tenants.

He explains: “When a 10-year-old tenancy agreement shows a rent of £500 per month, it doesn’t match the current rent. Universal Credit (UC) asks for an updated tenancy agreement, but this causes problems when the Universal Credit centre sees that the rent doesn’t line up with what the tenant says.

“Almost all of my tenants who switched to Universal Credit (UC) have had their new claims rejected by the Nottingham UC Service Centre.

“This isn’t just a one-off—it’s happening to every single one. We have to fight to tell UC staff that the tenants need a new tenancy with the updated 2024 rent.

“We never face these problems with tenants managed by letting agents. It’s the DWP UC system that makes us never take benefit tenants again.

“They might reject and discard the tenancy, leaving tenants upset. It’s easier for landlords to evict (even though it takes a year) and never take a Universal Credit tenant again.”

Previously when approached by Property118 Nottingham council told us that selective licensing is not designed to make a profit and the fees solely cover the costs of setting up, operating, and delivering the scheme in the city.

The Department of Work and Pensions previously told Property118 that their discretionary housing payments provide a safety net for anyone struggling to meet their rent or housing costs.


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Cider Drinker

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9:24 AM, 14th August 2024, About 4 months ago

‘Government data’ should recognise that unfair taxation and over-population are the leading causes of homelessness.
Blaming Section 21 simply tries to lay the blame at the landlords’ feet.
When a tenant is evicted via Section 21 (or Section 8), the property doesn’t disappear. It may change from being occupied by a tenant to being occupied by a homeowner. The eviction has little, if any, impact on homelessness.
Homelessness is caused by massive, unchecked net migration.
You have to admire the asylum seekers. They’ve certainly found it.

Reluctant Landlord

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10:03 AM, 14th August 2024, About 4 months ago

As in my case, when a property becomes vacant I only take applications from those that can evidence they can pay their own rent now.
I no longer take benefit tenants at all. Easier and less stress not to. If the government is willing to pay for accommodation for them, they can provide it for them too.
Looking ahead, evictions are going to become even more difficult, so I'm only going to be taking on tenants where, if this were to happen, they have skin in the game and where a difficult and costly eviction could really stuff them up going forward.
Time tenants realised the real implications of renting and what is it like to be held to account for the decisions you make in life and the contractual agreements you sign.
The wake up call is long overdue.

Dylan Morris

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11:43 AM, 14th August 2024, About 4 months ago

Good though Labour’s “hardship” test will sort all this out.

Reluctant Landlord

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12:38 PM, 14th August 2024, About 4 months ago

If this ever comes in at the level it is being suggested/threatened/mooted, then overnight no one will take a single person who in any way claims any rent contribution from the government.
There is an argument to state that any tenant that has their rent paid for them by the state is already in a level of 'hardship' before any AST is even signed as they are reliant on state help. On this basis there is there just cause not to be able to offer an AST from the outset therefore?
Many social housing providers also sign anti-homelessness pledges and are able to directly request councils make regular DHPs (discretionary housing payments) to keep the person housed if needed to stop them being evicted. The PRS have no such obligation nor such access as the contract between LL and T is a private one.
At a court hearing, it is only possible to speculate on what the outcome of a possession COULD be. It would be speculation only.
A homelessness application for example cannot be made until AFTER a possession order is given AND bailiffs sent out. A date could never be given as to when this WOULD happen before or during a possession hearing, as that is an administrative task carried out by court staff AFTER possession is granted.
What defines 'hardship' and at what point is this applied?
You can't have a mandatory ground with a 'but if...' add on thrown in, as that means it is not a mandatory ground.
How could the test be applied at the possession hearing/trial? Would it be considered as a standalone 'test', in addition to or in place of reasonableness where it is not a mandatory ground?

Mick Roberts

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13:00 PM, 14th August 2024, About 4 months ago

Reply to the comment left by Reluctant Landlord at 14/08/2024 - 10:03
That's good way of saying it
they have skin in the game and where a difficult and costly eviction could really stuff them up going forward.
As well know we ain't taking anyone slightly risky any more-The low earners tenants are REALLY losing out.

It's a recipe for disaster in Nottingham, Selective Licensing & UC.

The council’s head of housing, Mark Lowe, NOT RANG ME ONCE. I'm Nottingham's biggest private provider to Benefit tenants over 27 years. Not one phone call.

The new Chief Exec of Nottingham Council said she needs to change the Organisation.
Nottingham Council are completely toxic from the top which spreads down to the good innocent people at the bottom who did have common sense before they joined the Council.

Ian Narbeth

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15:08 PM, 14th August 2024, About 4 months ago

Reply to the comment left by Cider Drinker at 14/08/2024 - 09:24Spot on! The claim that "Section 21 is the cause of homelessness" is a false one. Yes, people who become homeless may well have received a s21 notice. That does not mean that the notice caused the homelessness. The claim is an example of the Post hoc, ergo propter hoc fallacy. "After this, therefore because of this." It is like saying that redundancy notices are the cause of unemployment. If Governments stopped employers making anyone redundant, does anyone seriously think that will cure unemployment?
Homelessness is caused by a shortage of houses at affordable rents in the right area. Build more houses and take care that landlords don't reduce the existing housing stock.

Chris @ Possession Friend

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15:09 PM, 14th August 2024, About 4 months ago

Tenants biggest enemy, isn't those that provide Housing for them ( as 85% of tenants say in the EHS ) its the politicians who drive those Housing providers out of the market, and consequently push up Rents.
Tenants, - 'Catch yourself on'

Mike Thomas

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22:18 PM, 14th August 2024, About 4 months ago

Reply to the comment left by Reluctant Landlord at 14/08/2024 - 12:38
I'm not sure if you understand where the hardship test is coming from. Mathew Pennycook has not only said that tenants can't be evicted for 2 years from the start of a new tenancy, but he is now proposing that a tenant can't be evicted if it would put them in greater "hardship" than the landlord. So unless the LL is about to get their property repossessed by their mortgage company, a tenant about to be evicted via a court order, will always be considered as being in a greater state of hardship than their landlord.

PH

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22:48 PM, 14th August 2024, About 4 months ago

Reply to the comment left by Mike Thomas at 14/08/2024 - 22:18
And that is the only reason I need to sell up.
I don't need the agro of pleading to have MY property back . It is the way the UK is going...to the dogs ....and I'm not waiting around.

Stella

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23:30 PM, 14th August 2024, About 4 months ago

Reply to the comment left by Mike Thomas at 14/08/2024 - 22:18
This is how they will confiscate the property of hard working people who have taken on lots of financial risk and given tenants flexibility and choices about where they want to live.

Tenant flexibility and choice will disappear if they bring back these draconian laws.

This is what we might expect if we lived in North Korea!

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