Friday, September 11, 2009

Falling into Arears

I've heard concerns from a number of different sources now that new method of paying housing benefit, the Local Housing Allowance (LHA) is not working in the manner which it was intended, to give more flexibility, choice and responsibility to tenants.

LHA was introduced last year, replacing the old housing benefit system for new tenancies. Instead of benefit being paid directly to landlords, it now goes straight to tenants, who are expected to take responsibility for passing on the rent money to their landlord. In practice, The Landlords Association now reports that many tenants choose not to do so and this appears to be causing real problems which are impacting on the already pressed social housing sector.

It's reported that many landlords are facing repossession because rent receipts, which they rely on for their own mortgage payments, fail to arrive. I've heard one story of a landlord who has turned in the keys of a dozen properties through falling into arrears with her own mortgages as a consequence.

The Landlords Association warns that LHA will contribute to a shrinking of housing supply for benefit claimants, as landlords turn away from the risks, with the result of more pressure being placed on social housing, which in turn will affect the most vulnerable tenants and increase homelessness.

Without a sense of the true national extent of the picture, it's hard to reach a conclusion but it does appear clear that among a specific and more vulnerable segment of the dependent population receiving housing benefit, passing the money to the claimant rather than direct to the landlord, is proving far too much of a temptation for those who live for the moment rather than thinking ahead about the rent.

6 comments:

Richard Card said...

Absolutely right Simon. In Stoke on Trent an insolvency practitioner (I think his office is in Moorlands Road Burslem) recently advised a buy to let landlady to go voluntary bankrupt.

The result was 41 sets of keys sent to building societies.

The number crunching was that she had 16 tenants working the LHA two months rent steal trick. But once she stood the arrears and got LHA paid direct she became liable for their overpayments (their fiddles) which the council recovered by reducing payments of LHA to her 25 honest tenants.

I think the practitioner worked on house prices having dropped 10.6% and shifting risk to Building Societies using her "Beneficial interest" in the properties.

If you take the average cost of enforcing a Section 21 repossession through the Courts as five months rent plus £800 and multiply that by 16 etc. Then you see why the advice was chuck the keys back at the building societies.

My approach is that I do not waste money enforcing Section 21 notices for repossession. I let the scum tenants waste their time running to the council housing advice service. Then I refuse to speak to the council public sector parasite advisors (they are being manipulated by the scum tenants into aiding and abetting them to jump the social housing queue and if you check internet you will see that the scum tenants benefits diddling classes exchange notes on how to steal up to 4 months LHA per year and work the Section 21 to queue jump for social housing)

My strategy is to pin the tenant in the house. County Court for rent arrears and send in bailliffs. After they are 8 weeks in arrears get LHA paid direct. But first I investigate them and bring benefits fiddling inquiries down on them so the council cannot later recover against me. So far I have found multiple fiddles by every tenant who took me to the 8 weeks rent arrears point. Often tenants just choose to run. I trace and County Court. My last one has been traced twice so far as he runs. I collate all his debt history. I complain to the Electoral Officer in whichever area I find the scrote and get voters reg forms sent to it to try to make it appear on records so his debts and scams keep catching up with him. His wife phoned my wife asking if he paid me would I not tell all his other creditors where he is. No way chum. This is not about money alone. This is about teaching you scum not to steal two months LHA from me.

I even had the Bolton Police email me to see if I had succeeded in tracing the scrote when they had not (posing as a charity collector) and I was pleased to give them his new address.

The one before him has now nearly paid their stolen two months rent to me by £10 per week standing order to discharge the county court I got on them at the new address I traced them

New Labour just cannot see that the programme "Shameless" is not a comedy. It is a documentary with laughs.

Visit Gumtree Homes wanted Simon ... and be dismayed. It is a way of life.

DrM. said...

I've posted this comment by Rick Card but have edited out some of the more colourful references in line with my acceptable use policy!


Absolutely right Simon. In Stoke on Trent an inso... Absolutely right Simon. In Stoke on Trent an insolvency practitioner (I think his office is in Moorlands Road Burslem) recently advised a buy to let landlady to go voluntary bankrupt.

The result was 41 sets of keys sent to building societies.

The number crunching was that she had 16 tenants working the LHA two months rent steal trick. But once she stood the arrears and got LHA paid direct she became liable for their overpayments (their fiddles) which the council recovered by reducing payments of LHA to her 25 honest tenants.

I think the practitioner worked on house prices having dropped 10.6% and shifting risk to Building Societies using her "Beneficial interest" in the properties.

If you take the average cost of enforcing a Section 21 repossession through the Courts as five months rent plus £800 and multiply that by 16 etc. Then you see why the advice was chuck the keys back at the building societies.

My approach is that I do not waste money enforcing Section 21 notices for repossession. I let the *** tenants waste their time running to the council housing advice service. Then I refuse to speak to the council public sector parasite advisors (they are being manipulated by the **** tenants into aiding and abetting them to jump the social housing queue and if you check internet you will see that the **** tenants benefits diddling classes exchange notes on how to steal up to 4 months LHA per year and work the Section 21 to queue jump for social housing)

My strategy is to pin the tenant in the house. County Court for rent arrears and send in bailliffs. After they are 8 weeks in arrears get LHA paid direct. But first I investigate them and bring benefits fiddling inquiries down on them so the council cannot later recover against me. So far I have found multiple fiddles by every tenant who took me to the 8 weeks rent arrears point. Often tenants just choose to run. I trace and County Court. My last one has been traced twice so far as he runs. I collate all his debt history. I complain to the Electoral Officer in whichever area I find the **** and get voters reg forms sent to it to try to make it appear on records so his debts and scams keep catching up with him. His wife phoned my wife asking if he paid me would I not tell all his other creditors where he is. No way chum. This is not about money alone. This is about teaching you *** not to steal two months LHA from me.

I even had the Bolton Police email me to see if I had succeeded in tracing the **** when they had not (posing as a charity collector) and I was pleased to give them his new address.

The one before him has now nearly paid their stolen two months rent to me by £10 per week standing order to discharge the county court I got on them at the new address I traced them

New Labour just cannot see that the programme "Shameless" is not a comedy. It is a documentary with laughs.

Visit Gumtree Homes wanted Simon ... and be dismayed. It is a way of life.

Richard Card said...

Simon my wife has "Asked" me to add that the tenants also skip leaving gas, electric and water bills unpaid.

Our last Skippie tenant (he who I got for posing as a charity collector, I also got him for a pensions scam and various other bits and pieces and he has been arrested twice since skipping owe=ing me money) left utility bills of over £1000 accumulated in just six months !

When ever we trace my wife phones the list of utilities etc and updates them to chase again.

The Public Sector is so useless it does not even send out a Voters Registration form as part of the LHA application process.

What is ironic is that one of the creditors we have found for this .... (self edited) ... is Watford Council. Two weeks ago we got their private dent collectors to return the case to Watford Council then asked Watford Council to contact Milton Keynes (the area we have traced it to) so that they should get a current exact address again from the Milton Keynes LHA.

Then if they pass the debt recovery back to private bailiffs the address may become known to all the others like gas and electric which he has had free for years (till he turned me over for two months rent). He actually paid me £200 in one day after I first traced it. Because he is realizing that he now has a pit bull on him. The result is he seems to now have to change address every four months. Keep running I enjoy it my friend. I told him when I first met him. I will go further than any other landlord to help you into work but if you spin me for money it ain't over till it's over.

It is the only way to be. Look no further to why Poles are doing the work in this country.

Richard Card said...

Er indoors just voluntold me to make a further point.

A tenant who was forced to stay in the house we rent, who was obliged to pay their rent arrears etc they end up thanking us for being hard bar stewards. Why ?

Because a year dowen the line their kids haven't faced another move, are settled in one house and at one school. And the partner who thanks us is the woman and mother (the man is usually the problem having aspirations beyond benefits income hence driving a big seven seater and having holidays etc)

In the end we do what society should do which is enforce social responsibility upon them. The result is stability for the next generation.

The sooner we vote out new Liar bour the better.

On which subject no wonder they don't want James Shortt/Thor Chemicals investigated what with the secret inquiry into how they led us into an illegal war in Iraq.

Anonymous said...

Mr Card is quite a big chap too so it's refreshing to hear he hasn't resorted to violence as far as we know. Too many landlords would have done so by these stages to punch a tenant's lights out - and with good reason. This country certainly needs a good wholesale shake up of the tax and benefits systems to root out fiddlers and dodgers. Trouble is, none of the main parties have the courage to do it.

Anonymous said...

anon again!
I had a similar experience when abroad. I sub-let a small appartment to a person living off the Social Benefit system of that Country. After 2 months, I had received no Rent from him. I asked for it, but was told that the Rent was being paid to me directly from the Social Dept Offices. After another month, and receiving no Rent again, I approached the Social Offices directly, only to be informed that they had paid the agreed Rent sum in cash to the said person since he moved in. I told them that I had in fact not received it. They then said that it was my problem and I should try to recover all the Rent myself. Easier said than done. They did, however, agree to pay his Rent directly to me, thus by-passing the Tenant. I never got the owed Rent back of course, but I will never ever take on another Tenant without a personal interview and a written contract.... and certainly nobody from the DHS.