Housing Benefit Changes - Help For Landlords
http://www.rentmanagement.co.uk/articles/745/1/Housing-Benefit-Changes---Help-For-Landlords/Page1.html
By Rent Collection Solicitor
Published on 2/04/2008
Click Here For Information About The New Rent Collection Service
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
From April 7th Housing Benefit will no longer be paid directly to landlords in respect of new claims coming through the benefits system. The Rent Management Service from Hutcheon Solicitors has developed rent payment cards to help ensure that rent payments are made by tenants in receipt of Housing Benefit payments under the new regulations.
Tenants Pre-Paid MasterCard Solution Developed To Combat Housing Benefit Changes.
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.Click Here For Information About The New Rent Collection Service
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