An open letter to the mainstream media

An open letter to the mainstream media

Universal Credit / Welfare Reform.With the controversy around Universal Credit becoming almost explosive and as rent arrears mount up & the housing benefit monies are spent on other things (drink, drugs, pay day loans, etc – which are extremely detrimental to ALL of our communities) Landlord Referencing Services are now seeing a massive influx of landlords AND letting agents joining our free tenant referencing system (literally hundreds every week now).

We believe that this is because landlords AND letting agents are now starting to realise that the only way to protect themselves against non-paying tenants in these times of austerity and benefit cuts is to not take them on in the first place.

Our courts are overloaded and cannot cope and the methods of checking tenants histories are becoming almost obsolete, therefore desperate landlords are now turning to the only (free) tool available to them; via Network Referencing at LRS.

LRS (exclusive) Feb 2013 Tenant Alert Statistics.

We would like to make it clear that is not some sort of “black-list website for landlords”, but simply a social networking site where landlords can protect themselves against potential rent arrears and in-turn provide the best tenants with the homes that they so rightly deserve. This in-turn gives us better communities all around.

The Government’s “flagship” welfare reform via Universal Credit will only make thousands more tenants homeless in the UK, as well as heaping even more debt onto the country and the tax payer (especially if the option of Housing Benefit being paid directly to the landlord is abolished) e.g. Failed UC Pilots.

The irony of it is, is it would seem that the only help that good tenants, good landlords and communities are getting is from a free website started up by a landlord and supported by many prevalent figures in the industry.

This story is set to keep on growing and evolving as it is at the heart of millions of people and thousands of communities across the UK, as more and more landlords will inevitably find themselves in more debt via arrears and tenants on low incomes will find it near on impossible to keep their heads above water.

Therefore the whole team at LRS hope that YOU can assist us in bringing this story to the mainstream media (simply by sharing this page) and stand alongside us in a united front against idiotic legislation and an out of touch Government.

Universal Credit could be the downfall of the Private Rental Sector taking on benefit tenants in good properties – and will only escalate homelessness, child poverty, ghettos AND rogue landlords.

Related topics:

DWP will rule on Universal Credit direct payment exceptions

Tenants on LHA to Sign a New Code of Conduct to a Combat “Negative attitudes”

91% of landlords less likely to rent to those on benefits via Universal Credit…

Author: News @ Tenant Referencing

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  1. I am sure that the UC direct payment thing will be revised as has anyone considered what will happen when council tax is paid direct to LHA tenants! (Yes that is the plan -as I checked with Leeds City Council!). Leeds City Council do not waste much time sending bailliffs to properties so they are going to have to increase the numbers of bailiffs more than 100 fold! The councils will lose so much revenue through so much council tax going up in cannabis smoke that this decision just cannot work at all. Just yet more proof that politicians don’t live in the real world!

  2. All this stuff is so silly when all that has to happen is for the govt to change the eviction laws in case of non-rent payment ONLY to allow any LL if they so wish to have a tenant who for whatever reason is one month in rent arrears; to be removed from the rental property with the assistance of police if necessary.
    This would solve the problem immediately.
    Tenants would then know that if they NOT pay their rent by the end of the month they WILL most likely be removed by the LL with the assistance of the police if necessary.
    ONLY a really dysfunctional tenant would allow that situation to occur!
    They would then deserve everything they get.
    They would be deemed by councils to have made themselves intentionally homeless who would therefore have NO obligation to house them.
    At least a LL would know that they could recover their property from a non-rent paying tenant at the end of the month.
    It is such a simple thing to do and yet it would transform the lettings market bringing substantially more rental property to the HB market.
    Will this be carried out by GOVT!!??………………………………An emphatic NO!
    Therefore all of the above open letter will come to pass.
    It almost seems that govt expects the PRS to privatise the losses that wrongun tenants cause and leave govt to incur housing costs substantially later than they would have to.
    They can rely on the increasingly lengthy eviction process to put off the evil day when they have to take responsibility for the wrongun tenant.
    I’m afraid the govt are going to be in for a shock………………the PRS will refuse to take on HB claimants unless they can achieve RGI on the tenant or their guarantor, which for all practical purposes is invarably impossible!!
    LL are NOT prepared to suffer the losses that a UC tenant COULD cause.
    Only a minority of wrongun UC tenants will NOT pay their rent.
    Unfortunately LL won’t know who those wronguns will be and so they are left with little choice than to deny all HB their rental accommodation.
    Yet again it will be a minority that will spoil things for the majority.
    So I say to govt do 1 simple thing; reform the eviction law to allow removal once a tenant is 1 month in rental arrears.

  3. The need for fully qualified guarantors becomes imperative.
    Guarantors will be called upon on a regular basis.
    Make sure they become an integral part of the tenancy at the outset.

  4. I would estimate that about 50% of LHA tenants will become in arrears with there rent when UC comes into force.
    I certainly will not be renting any of my properties again to UC tenants as its not only the arrears that will be likely to come up but also the time it will take to evict these people. With the courts being packed to the roofs with eviction processing the time it will take to get the tenant to court will probably double.

    I suggest that all landlords should refrain from letting to UC tenants until such a time that the government return to paying the LHA part of the UC direct to the landlord again.

    Some landlords will do the ostrich act and bury there heads in the sand about this UC issue and continue to rent to UC clients. They will unfortunatly learn a very nasty lesson.

    I for one will only accept working people in any of my properties and would not dream of allowing a tenancy to commence until the prospective tenants where fully checked out.

    The cost of checking out tenants is peanuts in comparison to the thousands it could well cost if a tenant has to be evicted.

    I have been a member of LRS pretty much since it started and i have uploaded all my tenants and will continue to do so. Not just the bad ones but also the good ones as it is in the good tenants interest to have a good reference also.