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- Rent Payments And Housing Benefit Changes - Information For Landlords
Rent Payments And Housing Benefit Changes - Information For Landlords
- By Rent Collection Solicitor
- Published 21/01/2008
- News & Articles , Tenant Debt Management Help , Problem Tenants
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Will Landlords Still Receive Direct Payment Of Housing Benefit from April 2008?
There has been much talk about how changes in the Housing Benefit and Housing Allowance payment system will affect private landlords that currently receive their tenants rent payments directly from the local benefits agency. This article serves to clarify the changes to the Housing Benefit payment system and answer some of the frequently asked questions regarding landlords and the forthcoming Housing Allowance Benefit alterations.
The New Rent Collection Service For Housing Benefit Tenants- Click Here
Landlords And Housing Benefit Changes April 2008
Housing Benefit is a state allowance to assist people with low incomes and savings to be able to pay their rent. In many cases a tenants will have agreed that their Housing Benefit can be paid directly to their landlord by their local housing benefit office and this practice for the most part has been very well received by landlords who feel more assured that they are likely to have less rent arrears problems if tenants rent payments are made directly to them by the Local Authority.
Local Housing Allowance is the new way of assessing the amount of rent assistance that a tenant should receive after their income and savings have been taken into consideration. Previously a Rent Officer would make the decision as to how much Housing Benefit a tenant would be eligible to receive towards rent payments by assessing whether they felt that the rent was fair and reasonable or too high. The way in which the maximum amount of Housing Benefit is being calculated is changing and the new Local Housing Allowance is the new way that a landlords tenants will have their Housing Benefit decided and this replaces the old Rent Officer system.'
Which Type Of Tenants Will Local Housing Allowance Apply To?
The new Local Housing Allowance will only apply to tenants with new rent claims received after April 7th 2008. Local Housing Allowance will not apply to tenants of housing associations or tenants that live in a caravan or mobile home. Additionally, any tenants that are currently receiving Housing Benefit will not be affected by the new Local Housing Allowance changes. Rent payments for tenants will continue under the old rules and landlords in direct receipt of Housing Benefit rent payments will continue to receive them if this is what the tenant has agreed to do.
Will Housing Benefit Continue To Be Paid Directly To Private Landlords?
In most cases Housing Benefit will be paid directly to the tenant and not to their landlord after April 2008. The responsibility for ensuring that rent payments are made on time will be the tenants as it is the case with tenants that are not in receipt of Housing Benefit. It is anticipated that this change may cause private landlords some difficulties initially and landlords are being encouraged to review their rent collection procedures beforehand. Where tenants in receipt of Housing Benefit do not have a bank account set up presently landlords may wish to encourage their tenants to open a basic bank account account or agree alternative methods of rent collection accordingly. Housing Benefit payments will continue in the same way regarding existing tenants however if a new claim is processed or the tenant moves house then the new system of assessment and payment disbursement will apply
For more information about the changes to the Housing Benefit system and implications for private landlords and rent payments visit our FAQ section - Click Here
The New Rent Collection Service For Housing Benefit Tenants- Click Here
Landlords And Housing Benefit Changes April 2008
Housing Benefit is a state allowance to assist people with low incomes and savings to be able to pay their rent. In many cases a tenants will have agreed that their Housing Benefit can be paid directly to their landlord by their local housing benefit office and this practice for the most part has been very well received by landlords who feel more assured that they are likely to have less rent arrears problems if tenants rent payments are made directly to them by the Local Authority.
Local Housing Allowance is the new way of assessing the amount of rent assistance that a tenant should receive after their income and savings have been taken into consideration. Previously a Rent Officer would make the decision as to how much Housing Benefit a tenant would be eligible to receive towards rent payments by assessing whether they felt that the rent was fair and reasonable or too high. The way in which the maximum amount of Housing Benefit is being calculated is changing and the new Local Housing Allowance is the new way that a landlords tenants will have their Housing Benefit decided and this replaces the old Rent Officer system.'
Which Type Of Tenants Will Local Housing Allowance Apply To?
The new Local Housing Allowance will only apply to tenants with new rent claims received after April 7th 2008. Local Housing Allowance will not apply to tenants of housing associations or tenants that live in a caravan or mobile home. Additionally, any tenants that are currently receiving Housing Benefit will not be affected by the new Local Housing Allowance changes. Rent payments for tenants will continue under the old rules and landlords in direct receipt of Housing Benefit rent payments will continue to receive them if this is what the tenant has agreed to do.
Will Housing Benefit Continue To Be Paid Directly To Private Landlords?
In most cases Housing Benefit will be paid directly to the tenant and not to their landlord after April 2008. The responsibility for ensuring that rent payments are made on time will be the tenants as it is the case with tenants that are not in receipt of Housing Benefit. It is anticipated that this change may cause private landlords some difficulties initially and landlords are being encouraged to review their rent collection procedures beforehand. Where tenants in receipt of Housing Benefit do not have a bank account set up presently landlords may wish to encourage their tenants to open a basic bank account account or agree alternative methods of rent collection accordingly. Housing Benefit payments will continue in the same way regarding existing tenants however if a new claim is processed or the tenant moves house then the new system of assessment and payment disbursement will apply
For more information about the changes to the Housing Benefit system and implications for private landlords and rent payments visit our FAQ section - Click Here
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6 Responses to "Rent Payments And Housing Benefit Changes - Information For Landlords" 
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said this on 22 Jan 2008 4:30:44 PM BST
This article highlights what a nightmare it is going to be to collect rent from tenants who are on benefits after April this year if they choose to put other things first. It is hard enough trying to make sure the housing benefit is paid by Councils to landlords now - delays are an all too common problem - but to hand the funds straight to the tenants giving them the choice is deeply concerning and then for the Government to ask landlords to get tenants to open basic bank accounts is even more alarming.
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said this on 22 Jan 2008 4:35:17 PM BST
This is something I had heard about but not in much detail and it really worries me. I have a couple of houses and the rent is paid direct to me at the moment as my tenants get housing benefit. I'm confident that I'll get the rent from one of the families but I can see trouble ahead with the other house. What are my options? I know there is your service what how would that make them pay? How far can I push it to make them pay if there are problems. Any advice would be great. Thanks
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said this on 07 Mar 2008 12:45:50 AM BST
As a tenant who is given the money to pay to her landlord, whilst I can appreciate the brevity of concern, may I say that most of us DO hand the money over. If you are seriously concerned, I strongly advise you to stipulate within your contract that monies MUST be directly send via the Council. To do otherwise is foolish and would be your own fault....
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said this on 11 Mar 2008 9:18:22 PM BST
I'm trying to figure out the reasoning for this change, but I can't, and yet there must presumably be a reason.
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said this on 11 Mar 2008 9:39:18 PM BST
Found the following on the website of North East Lincolnshire Council:
Q Why cant a landlord receive payment of Housing Benefit direct from the local authority?
A There has never actually been a right in legislation for a Landlord to receive Housing Benefit payments direct. There is a right for tenants to request this arrangement and it is this right that we are replacing. We believe that tenants in receipt of Housing Benefit should, where they are able to, take greater responsibility for managing their financial affairs in the same way as other tenants do. This should also help to equip people of working age with the skills they need when they move into work.
But we still intend to work closely with landlords. There are safeguards that we are introducing but we are also looking to provide landlords with information about the progress of tenants Housing Benefit claims and details about when an individual tenants benefit payments will start. This will be dependent on tenants agreeing to this in much the same way that they previously did. We believe that this will help to prevent scope for confusion and help landlords and tenants to take effective steps to ensure that the rent is paid.
Here’s a link to said page (you need to scroll down just over half way):
http://www.nelincs.gov.uk/AtoZ/atozDetail?ID=6913
The reasoning sounds very lame to me, but the banks and building societies won’t be complaining about it I’m sure!
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said this on 12 Mar 2008 8:47:32 AM BST
Thanks for this useful information Allan!
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