Currently viewing the tag: "benefit tenants"
UK PRS Rents Rise Faster Than Tenant Income

UK PRS Rents Rise Faster Than Tenant Income

Working tenants renting property in the UK private rented sector have diminishing amounts of disposable income after new research revealed that average PRS rents rose four times faster than average UK salaries increased.

The March 2013 HomeLet Rental Index shows the average cost of renting property in the UK private rented sector increased by 3.3% during the first quarter of 2013 to average £776 (GBP) per month.

In contrast, the average amount working tenants earn in a year only increased by a minimal 0.8% over the same period to £27,300 (GBP).

Although the 3.3% rise is much higher than that of tenant income, the increase in PRS rents has apparently slowed.

Data from March’s report also shows the average cost of renting a property in the UK PRS in the first quarter of 2012 increased by 3.4% and a significant 6.9% in 2011.

Continue reading »

No Buy To Let Mortgages For Landlords with Benefit Tenants

No Buy To Let Mortgages For Landlords with Benefit Tenants

It has emerged that one of the property investor’s best mortgage resources is going to have restrictions placed on their Buy To Let mortgage products.

The Mortgage Works, who were once the lender of choice for hundreds of UK property investors, have changed their mortgage acceptance and lending criteria to such an extent that they will no longer accept buy to let properties that will be inhabited by any tenants claiming any form of state benefit, local housing allowance (LHA) housing benefit or even the upcoming Universal Credit.

As the major buy to let mortgage lender used by portfolio landlords, this news is a real blow for anyone with DSS tenants or even working tenants claiming Housing Benefit.

Continue reading »

Landlords want to avoid LHA tenants

UK Landlords Want To Avoid Tenants Claiming Benefits

A survey conducted by the National Landlords Association (NLA) revealed that nearly half of its members felt that they could no longer afford to rent their properties to tenants receiving Local Housing Allowance or Housing Benefit, and as a result they would almost definitely stop considering LHA tenants for their properties.

Similarly almost 70% of the landlords that responded to the survey felt they would completely withdraw from the UK benefit sector within the next 3 years.

The recent cuts in LHA payments has meant that benefit claimants can now only be awarded a maximum of 30% of the local average rent, whereas before the cuts it was 50%.

Also, the age at which claimants can claim for more than a single room in a shared house has been increased from 25 to 35, meaning more people are being forced to share…a prospect that could result in some landlords needing to register their property as a House of Multiple Occupation (HMO).

David Salusbury, Chairman of the NLA, commented on the findings saying; “It’s concerning that so many landlords appear to be planning to withdraw from the LHA market within just three years, as they can no longer afford to let their properties to tenants at the reduced benefit rate.”

Local councils have been given permission to contact private landlords with the option of direct LHA payments in return for slightly reduced rents, however it seems that only 25% of councils in the UK have made any effort to speak directly with landlords about the matter.

And those local authorities that have contacted landlords, have offered such lowly reduced rental payments, that UK landlords are refusing to deal with them.

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!