Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal

Chancellor Rishi Sunak has cut the amount the government claws back from workers who receive Universal Credit ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal | LandlordZONE.

Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal

Chancellor Rishi Sunak has cut the amount the government claws back from workers who receive Universal Credit (UC) top-ups from 63p to 55p for every £1 they earn, but also confirmed £5 billion in funding to help bail out more property owners hit by the cladding scandal.

The new UC announcement, together with a £500 increase in work allowances, means Sunak is supporting many of the lowest-paid families with a £2 billion scheme worth £1,000 a year on average to the poorest UC claimants who have their pay topped up by the state.

“This is a two billion pound tax cut for the lowest-paid workers in our country, supports their costs of living and rewards work,” he told MPs.

Sunak said it would affect some two million families, the majority of whom will be renters, and come into effect at the beginning of December at the latest.

He gave two examples. This included that a single mother earning the national minimum wage and renting her home would be better off by £1,200 a year, while a couple with two children renting their home would be better off by £1,800 a year.

Read more about Universal Credit.

Cladding costs

Sunak’s budget speech offered slim picking for landlords overall unless they property owners within tower blocks affected by the cladding scandal.

The Chancellor confirmed the government’s £5 billion to fund more relief for those facing financial difficulties following the Grenfell tragedy – many of whom are landlords.

Mary-Anne Bowring (pictured), MD of property management firm the Ringley Group, says: “A blanket tax on developers is fairer than leaving leaseholders to shoulder the burden but it is still a blunt instrument to use to fix the cladding crisis.

“Fundamentally, accountability should fall squarely on those who overlooked the potential hazards of unsafe cladding in the first place.”

Estate agent Jeremy Leaf (pictured) adds: “The £5 billion fund is a step in the right direction but nowhere near the sums mentioned as being realistic to resolve the problem.

“A proper assessment of what’s involved is required, as well as enough tools to do the job in terms of engineers and surveyors and robust checking.

“Why should anyone be stuck in something un-mortgageable, particularly those blocks with very limited amounts of cladding? They have been tarred with the same brush as those blocks with extensive issues.”

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal | LandlordZONE.

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LATEST: Rogue tenant rumbled after applying for overlapping rent repayment orders

A rogue tenant who duped her landlords by sub-letting their property was rumbled after she tried to ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - LATEST: Rogue tenant rumbled after applying for overlapping rent repayment orders | LandlordZONE.

LATEST: Rogue tenant rumbled after applying for overlapping rent repayment orders

A rogue tenant who duped her landlords by sub-letting their property was rumbled after she tried to claim a Rent Repayment Order on two homes simultaneously.

Vanessa Breuer had purported to be a tenant in a home at Wheat Sheaf Close in London’s Canary Wharf (pictured), owned by Christiern Dart and Katherine Richardson.

She told their letting agent that she was living with her family but then came forward to say it wasn’t actually one household and that her fiancé was her employer.

“The landlords didn’t want to be in breach of the regulations so immediately applied for an HMO licence,” Ian Norman, a partner at , tells LandlordZONE.

During Covid, she had re-negotiated the rent after falling behind with payments, then as the landlords started proceedings to gain possession of the property it transpired she had been subletting it and operating an HMO.

“We believe that’s why she was so concerned about getting a licence, as she would have been found to have been operating it illegally,” says Norman. “She was profiting from the rent reduction and illegally sub-letting.”

Double application

Breuer applied for an RRO on this property for the short period it had been unlicensed but also applied for an RRO on another property, where the dates of occupancy overlapped, and had indicated that she was the tenant of both.

Challenged by a First Tier Property Tribunal, she withdrew the application. “She could have been making multiple applications – we still don’t know where she was living,” adds Norman (pictured).

Breuer was ordered to pay costs of £1,942 by the tribunal, which ruled: “It is clear to us that the applicant set about potentially unlawfully occupying the property and making an application for an RRO when it would seem she did, or should have known that such an application was, at best misconceived.”

It is not known whether the other landlord involved will pursue the case through the criminal court.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - LATEST: Rogue tenant rumbled after applying for overlapping rent repayment orders | LandlordZONE.

Source : Landlord Zone More   

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