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TOPIC: Buy-to-let property supremo shuts door on housing benefit tenants

Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 10:22 #1

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www.theguardian.com/money/2014/jan/04/bu...sing-benefit-tenants
One of Britain's best-known landlords has issued eviction notices to every tenant who is on welfare, and told letting agents that he will not accept any more applicants who need housing benefit.

Fergus Wilson, who with his wife Judith owns nearly 1,000 properties around the Ashford area of Kent, has sent the eviction notices to 200 tenants, saying he prefers eastern European migrants who default much less frequently than single mums on welfare. He says the move is purely an economic decision and points out that private landlords are running a business.

"Rents have gone north, and benefit levels south," he said. "The gap is such that I have taken the decision to withdraw from taking tenants on housing benefit. From what I can gather just about all other landlords have done the same. Our situation is that not one of our working tenants is in arrears – all those in arrears are on housing benefit."

A key factor for Wilson and other landlords is that it is impossible to obtain rent guarantee insurance for a tenant on housing benefit. This type of insurance is sold to landlords and is designed to cover the rent if the tenant stops paying for any reason.

Another issue Wilson raises is the number of tenancy applications landlords receive for each property.

"Tenants on benefits are competing with eastern Europeans who came to the UK in 2005 and have built up a good enough credit record to rent privately. We've found them to be a good category of tenant who don't default on the rent. With tenants on benefits the number of defaulters outnumbers the ones who pay on time," he said.

"Single mothers on benefits have been displaced to the bottom of the pile; sympathy for this group is disappearing. There aren't enough places for people to live."

Dan Wilson Craw, a spokesman for campaign group Priced Out, says he is dismayed to hear Wilson's announcement: "Evicting tenants because you're suddenly upset about new government policies is unbelievably heartless, and could lead to more people deciding not to claim benefit for fear of losing their home, and sinking further into poverty," he said, "This is just one symptom of a wider housing market that is simply not working in the consumer's interests. The instability and poor conditions that private tenants have to deal with would not be tolerated in any other market."

Wilson's decision comes after figures from the National Landlords' Association published in December, which showed that the number of private landlords letting to people on benefits has halved to just one in five.

Problems for tenants on benefits seem likely to get worse when universal credit is introduced. Under the scheme, six means-tested benefits, including housing benefit, will be combined into one monthly payment. Tenants on benefits will need to budget and pay the rent to their landlord themselves.

Universal credit started to be introduced in April 2013 and it is predicted that all claimants will be moved to the scheme by 2017.

The Wilsons shot to prominence in 2006 when it was revealed that they had built up Britain's biggest buy-to-let empire, sometimes snapping up a property every day in the early part of the decade.

Wilson is not the first large-scale landlord to raise concerns about low-income tenants. Last month Kevin Green, a landlord with more than 700 properties in Wales, said he may stop letting to people on welfare.
Of course, there's tonnes of social housing in Britain, so this will cause no problems whatsoever. I predict absolutely no long-term difficulties as a result of this policy, it's not as if there are millions of people in receipt of housing benefit.
The true measure of a man is not his intelligence or how high he rises in this freak establishment. The true measure of a man is this: how quickly he can respond to the needs of others and how much of himself he can give - Philip K. Dick.
Last Edit: 04 Jan 2014 10:23 by wake_up_bomb.
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 10:46 #2

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There's so much to this story. I reckon if we disected it methodically we could shed light on an awful lot of really bad aspects of the corruption inherent in our system.
"laws are unenforceable if the majority break them."-humanspirit,
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 11:09 #3

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This is the one thing that is worrying me about moving....I'm at the bottom of that pile (single mum).
I have always rented privately, and as a consequence I have always had to pay the 'bedroom tax'. I've never fallen foul of a landlord for rent arrears....but by the mere fact private landlords up and down the country are doing this will make my move all the more difficult. :(
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 11:57 #4

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Rachmanism, as predicted, is back.

en.wikipedia.org/wiki/Peter_Rachman

Can't live here, can't sit there, can't have this, can't wear that.

Why? Well, because they want to feel richer by seeing others suffer the effects of poverty.
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 11:57 #5

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angelchemuel wrote:
This is the one thing that is worrying me about moving....I'm at the bottom of that pile (single mum).
I have always rented privately, and as a consequence I have always had to pay the 'bedroom tax'. I've never fallen foul of a landlord for rent arrears....but by the mere fact private landlords up and down the country are doing this will make my move all the more difficult. :(
:jane:
I have absolutely no doubt whatsoever that a massive shitstorm is brewing sooner or later. If you take, for example, the economy of London, I cannot see how it can be remotely sustainable.
The true measure of a man is not his intelligence or how high he rises in this freak establishment. The true measure of a man is this: how quickly he can respond to the needs of others and how much of himself he can give - Philip K. Dick.
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 12:01 #6

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wake_up_bomb wrote:
angelchemuel wrote:
This is the one thing that is worrying me about moving....I'm at the bottom of that pile (single mum).
I have always rented privately, and as a consequence I have always had to pay the 'bedroom tax'. I've never fallen foul of a landlord for rent arrears....but by the mere fact private landlords up and down the country are doing this will make my move all the more difficult. :(
:jane:
I have absolutely no doubt whatsoever that a massive shitstorm is brewing sooner or later. If you take, for example, the economy of London, I cannot see how it can be remotely sustainable.

I have a friend who lives in London...who honestly believes the 'recession' is over..... :O ...needless to say his ear got bent with peels of laughter from me......and I had to reign in my anger with his attitude :emb:
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Re:Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 12:41 #7

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I mentioned my surprise at the rent farce when I came back to Blighty, I've had to pay 6 months rent up front as I've no credit record in the UK, interestingly enough neither will any EU migrants unless theyve been here at least a year, in fact I think its 3 years
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Re:Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 12:50 #8

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WTF are they playing at? It's just creating problems for all concerned.
Warning: Spoiler! [ Click to expand ]
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 12:50 #9

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knobmeup wrote:
There's so much to this story. I reckon if we disected it methodically we could shed light on an awful lot of really bad aspects of the corruption inherent in our system.

At the root of the problem is the fact that every other creature on earth is allowed to create it's own nest or dwelling without hindrance but humans are not.

The making of profit from a basic need,which should be a legal right is amoral.

Why don't schools teach you how to build a house LOL it's basic.
naivety attracts evil and evil attracts naivety
Last Edit: 04 Jan 2014 12:52 by humanspirit.
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 12:56 #10

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'Social' housing is dead, and we all just sat around and let it happen. It's not as if nobody saw this coming either.

The very point of social housing, to my mind, was that it was there as a safety net, like many of our benefit schemes - which have also all now been well and truly fucked - for those that could not do things any other way, be that because of credit history, income etc. etc.

I believe the term 'shitstorm' to be a bit of an understatement in all honesty. I reckon our grandparents are currently spinning in their graves at what we have allowed to happen.

As an aside...someone who owns over a 1000 properties for profit really SHOULD NOT have been encouraged to house some of the most vulnerable people in our society in the first place. We all know this though, so...

:dunno:
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 13:02 #11

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I often wonder just what would happen if every household in the UK flat refused to pay their council tax until this issue was resolved? This is, after all, precisely what you are paying for, is it not?

Social housing by its nature is not a 'loss', despite what some folks may want for you to believe. After initial investment, housing projects have paid for themselves in a few years and your only outgoings are then upkeep and repair, which are pretty minimal. Granted, social problems may arise when you have so many disadvantaged people clumped together, but not if you're doing it properly and giving everyone a decent standard of living and somewhere safe to come home to at night.

If we thought some of the issues that arise on housing estates were horrific, just wait and see what will happen once those estates are no longer there.

I'm a bit pissed off. Can you tell? Am off to try and centre myself....again. :D
What we are today comes from our thoughts of yesterday, and our present thoughts build our life of tomorrow: Our life is the creation of our mind.

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Last Edit: 04 Jan 2014 15:55 by Abs.
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Re:Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 13:05 #12

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humanspirit wrote:
knobmeup wrote:
There's so much to this story. I reckon if we disected it methodically we could shed light on an awful lot of really bad aspects of the corruption inherent in our system.



At the root of the problem is the fact that every other creature on earth is allowed to create it's own nest or dwelling without hindrance but humans are not.



The making of profit from a basic need,which should be a legal right is amoral.



Why don't schools teach you how to build a house LOL it's basic.


We let animals off, if we go find some empty land and build on it, we get arrested for trespass because the empty land 'belongs' to some rich cunt
“Fascists are not human. A snake is more human.” - Hugo Chávez
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 13:09 #13

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Refusing to pay council tax isn't that straight forward. I've related the tale here before of my cancelling the DD mandate until such time as they supplied me with info as to how much of it was earmarked for CP training costs.

They didn't respond to me at all, and with no warning or court process that we were notified of or anything, just went directly to my husband's then employers for an attachment of earnings. :mad:
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Last Edit: 04 Jan 2014 13:13 by Gilly.
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 13:17 #14

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humanspirit wrote:
Why don't schools teach you how to build a house LOL it's basic.

School does not teach you to work for yourself: it teaches you to work for others.
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Re:Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 13:17 #15

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Cant attach tax to the top self employed earners though who leave it in cayman island accounts
“Fascists are not human. A snake is more human.” - Hugo Chávez
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Re:Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 13:18 #16

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mikey mikey wrote:
humanspirit wrote:
Why don't schools teach you how to build a house LOL it's basic.



School does not teach you to work for yourself: it teaches you to work for others.


Bingo...
“Fascists are not human. A snake is more human.” - Hugo Chávez
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Re:Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 14:12 #17

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andyh wrote:
humanspirit wrote:
knobmeup wrote:
There's so much to this story. I reckon if we disected it methodically we could shed light on an awful lot of really bad aspects of the corruption inherent in our system.



At the root of the problem is the fact that every other creature on earth is allowed to create it's own nest or dwelling without hindrance but humans are not.



The making of profit from a basic need,which should be a legal right is amoral.



Why don't schools teach you how to build a house LOL it's basic.


We let animals off, if we go find some empty land and build on it, we get arrested for trespass because the empty land 'belongs' to some rich cunt

Albert Dryden,man of action LOL.
naivety attracts evil and evil attracts naivety
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 15:53 #18

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Gilly wrote:
Refusing to pay council tax isn't that straight forward. I've related the tale here before of my cancelling the DD mandate until such time as they supplied me with info as to how much of it was earmarked for CP training costs.

They didn't respond to me at all, and with no warning or court process that we were notified of or anything, just went directly to my husband's then employers for an attachment of earnings. :mad:

I know it...it was one of those rhetorical doozies. It would have to be something that every single person in the country went along with, as ever, for it to ever have an impact.
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Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 16:22 #19

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Ab Origine wrote:
Gilly wrote:
Refusing to pay council tax isn't that straight forward. I've related the tale here before of my cancelling the DD mandate until such time as they supplied me with info as to how much of it was earmarked for CP training costs.

They didn't respond to me at all, and with no warning or court process that we were notified of or anything, just went directly to my husband's then employers for an attachment of earnings. :mad:

I know it...it was one of those rhetorical doozies. It would have to be something that every single person in the country went along with, as ever, for it to ever have an impact.

It will never happen where there is a cohesive force of people willing to take risks such as imprisonment or fines,one good reason is they have dependants to think about.

I do envisage a future where some individuals are pushed beyond a point and fight back.
naivety attracts evil and evil attracts naivety
Last Edit: 04 Jan 2014 16:25 by humanspirit.
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Re:Buy-to-let property supremo shuts door on housing benefit tenants 04 Jan 2014 17:03 #20

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I don't because I believe they know exactly what they are doing which is precisely what worries me
“Fascists are not human. A snake is more human.” - Hugo Chávez
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