Currently viewing the tag: "No DSS"

59% of Private Rental Sector (PRS) landlords refuse to accept applications from tenants claiming benefits, including me!

Landlords claim that tenants who do not receive any form of welfare support are far more reliable when it comes to paying the rent on time and generally looking after the property.

In a survey of more than 1,000 UK landlords by website SpareRoom.co.uk showed that over half of the landlords surveyed had a  “No DSS” clause on their adverts. I too have the same clause and whilst I do not want to discriminate against people I do feel it is necessary to protect my rental income and my properties.

Landlords taking part in the survey were asked why they would not rent out their property to housing benefit tenants:

  • 30% said non-benefit tenants were more reliable,
  • 47% said they did not want the hassle of dealing with payment problems.

SpareRoom.co.uk called for changes to the way Local Housing Allowance (LHA) was paid, joining calls from the Residential Landlords Association (RLA) and homeless charities “Shelter” and “Crisis” to return to direct payments to landlords, which could increase the number of PRS properties being let to tenants claiming state benefits.

Matt Hutchinson, director of SpareRoom.co.uk, said: “The coalition government’s planned welfare cuts to housing benefits, coupled with the lack of affordable housing in the UK, could have a devastating impact on families and individuals relying on the state for help with living costs. But it seems that landlords, who have had bad experiences with housing benefit tenants, are reluctant to help ease the pressure caused by a rental property shortfall, favouring private tenants instead. The move to change the way Local Housing Allowance was paid in 2008 was designed to give those on housing benefits greater responsibility for their finances, but what this poll shows is that the change has had overwhelmingly negative repercussions for British landlords. It’s clear from this survey that a shake-up of the current system of paying housing benefit to the tenant is desperately needed, and reverting back to the old structure, where landlords receive rental payments directly from the council would be a step in the right direction.’

According to the survey, 87% of landlords have had problems with housing benefit tenants not paying rent on time and 11% claimed to have had tenants who had stopped paying rent altogether. I unfortunately fall into both these percentages having bad experiences with benefit tenants and very little help or advice from my local authority.

In the survey, UK landlords said that problems associated with DSS tenants included late rent payments, damage to the property and problems arising from suspension of benefits.

74% of landlords said they would not take a tenant on housing benefit even with a working Homeowner acting as their guarantor and I must agree with them.

Once bitten and all that, but one thing is for sure from my point of view – NEVER AGAIN!!!

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