Welfare Reforms

[hbadvocacy]

I have in the past few days launched my latest website www.welfarereformsadvice.co.uk. which is still very much a work-in-progress which will, in the next week or so, have a specific section covering Private Landlords.

Over the next year, the Government will publish a series of statutory instruments which will provide the finer detail we have been patiently waiting for. These will be included on the site witha n explanatory note and link to any associated DWP guidance.

The Government is clearly reluctant to provide specific responses to many of the questions being posed by various stakeholders and is already coming up short in terms of its critical IT systems as I predicted it would.

Have a look at http://www.telegraph.co.uk/news/poli...y-experts.html

Read also the following article suggesting the Government is actively considering eliminating under 25's from Housing Benefit. It may not come to anything but highlights just how desperate it is to make savings and reduce Government debt http://www.insidehousing.co.uk/tenan...521351.article

I intend to add articles such as these on a weekly/monthly basis to the site.

HBadvocacy
www.welfarereformsadvice.co.uk

[hbadvocacy]

Hi Guys,

By way of update, the site now has the promised section for private landlords and compliments what's already available on my original site www.hbadvice.co.uk. I hope you find this useful just now, and as it develops, it will become one of your favourites.

Hbadvocacy
www.hbadvice.co.uk
www.welfarereformsadvice.co.uk

[hbadvocacy]

Hi Guys,

This article was recently published. Have a read! http://www.24dash.com/news/housing/2...it-cuts-survey

HBadvocacy
www.hbadvice.co.uk
www.welfarereformsadvice.co.uk

[Snorkerz]

Hi Guys,

This article was recently published. Have a read! http://www.24dash.com/news/housing/2...it-cuts-survey

Your opinion on the likelyhood of the 'scrap benefit for u25s' plan?

[YesAdam]

As a LHA landlord of over 25+ lha tenants, the current changes had a small negative effect. We gave notice to all tenants under 35+ whom were in 1 bed properties giving them notice or opportunity to move to our HMO. Their is just one lady tenant left that wont move, so we are getting far less but could move for possession due to increasing arrears (At this time we are being flexible).

The Welfare Reforms, in short have had little effect to us except to increase our acceptance criteria - demand remains high. It only effects under 35's at this time as their choices are limited. Unless they are employed or have children we only offer under 35's housing in our HMO / Shared Room Properties.

The Welfare Reform Act 2012 will almost certainly cause havoc for Private Sector Landlords. The abolition of HB/LHA as a stand-alone benefit, to be replaced by the inclusion of a ‘housing element’ in the new all-inclusive Universal Credit

Can you please check your sources?
Their is a difference between LHA and Housing Benefit, the reform act is for Housing Benefit which only effects Social Landlords and not Private Landlords. In all calls I have made looking into this the council representatives made me aware that it wont effect PRS when it is introduced but MAY be introduced at a later time.
The proposed act fails to mention Landlords or Private Rented Sector or Local Housing Allowance throughout.

I look forward to your reply, im yet to find an official document regarding LHA/PRS and Universal Credit only speculation from letting commenter's.

[hbadvocacy]

Snorkez,

I don't believe it will happen because it would certainly be challenged by the likes of Shelter/CPAG on the grounds of its blatant discrimination. What it does highlight is the extent to which this Coalition Government may be willing to venture to achieve its objective of dramatically reducing its fiscal deficit.

HBadvocacy
www.hbadvice.co.uk
www.welfarereformsadvice.co.uk

[hbadvocacy]

YesAdam,

Firstly, LHA is only a small part of the Housing Benefit scheme (Housing Benefit Regulations, 2006)and doesn't cover all private sector claimants. Those who were participants in the scheme prior to April 2008 are still treated under the "old scheme" rules. The Housing Benefit guidance applies equally to HB/LHA recipients. For your info, there is no separate or equivalent LHA legislation!

As far as the Welfare Reforms are concerned you couldn't be any more wrong! The WR Act 2012 came into effect from 8th March 2012 and will significantly affect all your exisitng LHA claimants who will migrate to the new benefit starting from October 2013. For example, where you're currently receiving "direct payments" under one or other of the "safeguard" provisions this is unlikely to apply from October 2013. The Coalition Government's Universal Credit will amongst other things, abolish HB/LHA payments and include a "housing costs element" in the global UC payment which will be paid direct to the tenant, monthly in arrears, recreating the difficulties you most likely experienced in April 2008 when most payments went directly to your tenants. As I've said in earlier posts, the Coalition Government is hell bent on pressing ahead with its plans despite the historical evidence which suggests making payment to the tenant will in many cases cause loss of revenue to PRS landlords/agents.

Universal Credit will particularly affect social landlords because for the first time here will be no tick box facility permitting working age HB payments to be made direct to these landlords. Currently around 95% of such payments go direct to associations nationwide. From October 2013 when the migration starts associations will start to experience considerable difficulty collecting rent for the first time from many of these tenants.

Have a read at my website www.welfarereformsadvice.co.uk for a more thorough explanation and feel free to check this out with your authority's Head of Benefits.

HBadvocacy
www.hbadvice.co.uk
www.welfarereformsadvice.co.uk

[YesAdam]

Sure but their is LHA legislation .. as amendments to the HB regulation.
You say UC will abolish LHA, i'm yet to see this is the case with calls to associates in benefits I was clearly advised that PRS will remain unaffected but social housing will go trough a tough time. In the WR Act it mentions nothing specific regarding LHA where I can read as even a hint that we will come under this.

Sure but your example does not fit in our case, we work with our bank and our tenants to ensure we get paid direct from day one. The new reforms have had little effect, mainly down to my spreadsheet and being proactive.

[theartfullodger]

Yes adam, but I'd lay odds of more than 100:1 that Bill is right & you are perhaps not...

I'm sure you already appreciate who he is
http://www.landlordzone.co.uk/forums...141-hbadvocacy
, that he is a "Topic Expert", his websites
http://www.welfarereformsadvice.co.uk/
&
http://www.hbadvice.co.uk/

& what he does??


I could of course be wrong.. aye, right (Scots usage...)

Cheers!

[YesAdam]

haha - I did see who he is. The thing about experts are ... their a good source of knowledge.

I'm unable to find any official document mentioning PRS and UC. Its mainly speculation from Blogs and such like (most don't know theirs a difference between HB and LHA) and I'm one for the fine detail.

If I am wrong, then im wrong. I could invest in infrastructure to get around that, which is why I am interested at the facts at this point. If this UC does come into practice then it will have a negative effect on my current business, but it may also be an opportunity as others will be in same situation, looking for a way out.

As far as I can tell our benefits department has no knowledge this will effect LHA/PRS and as far as I can read nothing official mentioning LHA/PRS. In all I have read, Im starting to feel sorry for social landlords.

If UC is implemented incremental, social first then PRS. Im sure the damage to social landlords may change Iain Duncan Smith and housing minister Grant Shapps minds.