NEW: Radical scheme starts to tempt private landlords into social sector

Landlords will be paid cash deposits by a council in a radical bid to shorten housing waiting ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - NEW: Radical scheme starts to tempt private landlords into social sector | LandlordZONE.

NEW: Radical scheme starts to tempt private landlords into social sector

Landlords will be paid cash deposits by a council in a radical bid to shorten housing waiting lists.

Stafford Borough Council has given its new innovative scheme the go-ahead, using a government-backed tenancy deposit scheme and has earmarked £30,000 for the first year, with the aim of helping 30 tenants.

The authority acknowledges that its current deposit guarantee scheme to help prospective tenants on low incomes find homes isn’t attractive to landlords because it doesn’t cover rent arrears.

Landlords are also reluctant to take Universal Credit claimants because of the lack of a direct pay option for the housing benefit element and because clients can end alternative payment arrangements at any time.

£10,000

Households in Stafford currently face an average wait of seven months for a one-bedroom property on the council’s housing list – and it can cost the authority more than £10,000 to house someone in temporary bed and breakfast accommodation during that time.

About £1,300 is needed up front to start a private tenancy in the town where the average rent is £525 per month.

A cabinet report says: “There are significant barriers for households with complex needs who cannot access social housing and have to wait in unsatisfactory accommodation whilst protracted and sometimes failed negotiations with landlords take place.

“This waiting can have an adverse effect on the client’s health and wellbeing, including mental wellbeing, and make rehousing more difficult.”

Councillor Jeremy Pert (pictured), for community and health, says: “Sometimes the private rental sector does not work as well as it could, which adds to our costs as a council, and means a smaller number of homes are available to our residents than could have been the case.

“By making the changes proposed to the existing private sector access policy we are hoping to secure greater access to the private rented sector and lower temporary accommodation costs.”

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - NEW: Radical scheme starts to tempt private landlords into social sector | LandlordZONE.

Source : Landlord Zone More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’

Restrictions affecting landlords are set to be eased next month. Increased notice periods when it comes to ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’ | LandlordZONE.

EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’

Restrictions affecting landlords are set to be eased next month.

Increased notice periods when it comes to repossessions and a ban on enforcement action in all but the most serious of cases were introduced by Government in a bid to protect tenants during the pandemic.

Now, with figures falling and the country gradually opening up again the restrictions are set to ease. But what will change look like?

At the time of publication while the Government had ministers had given no indication as to how – or the timescales involved.

For our part we have been working tirelessly behind the scenes in Westminster and Cardiff Bay to shape the way we transition out of emergency measures.

NRLA research shows landlords have been hit hard by the pandemic. In all 60% have lost money, with data showing 840,000 tenants have built arrears since last March.

We want assurances from the Government that exiting the emergency restrictions will be as seamless as possible and work for landlords and tenants alike.

As part of this we have submitted a paper to Government outlining simple changes that could have a major impact on exit plans, while ensuring support is available to those who need it.

We have asked for: 

  • a comprehensive financial package which tackles rent debt
  • court reform to speed up the processing of possession claims
  • firm dates for the tapering down of extended possession notice periods

Arrears

We have joined forced with partners from across the sector – including both landlord and tenant-focussed groups – to call for a Government-backed interest-free loan scheme for tenants to access to pay off Covid-related arrears and continue to campaign on the issue.

In addition we want grants to be made available to benefits tenants to reduce the pressure on individual landlords.

Courts

With year-long waits from claim to court to enforcement action is needed to speed up the process and tackle the ever-increasing backlog.

To this end we are encouraging the Government to allow possession hearings to be heard by video link which we believe could have a huge impact on court waiting times.

There are also technical changes we believe can make a difference, including the introduction of a consistent definition of serious rent arrears, which currently differs between the court and the Government in the prioritisation of pre-Covid cases.

Tapering of notice periods

We also want the tapering of notice periods to begin as soon as the current restrictions end on June 1st. A progressive reduction in notice periods will help to ensure the most serious cases are heard most quickly by avoiding immediately overwhelming the courts.

With an announcement expected imminently, we hope the Government will look at adopting our proposals to support the sector, taking positive action to help landlords and tenants recover from what has been a year of unrivalled challenges.

For more information on our calls for financial support for the sector click here.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’ | LandlordZONE.

Source : Landlord Zone More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.