Shelter is running a campaign for people to sign an online petition urging more lenders to lend to buy-to-let landlords who take benefits tenants.
Recently, Nationwide and Lloyds announced that they would allow their landlord borrowers to accept tenants on Local Housing Allowance.
Now Shelter says that other lenders must follow suit.
It says that most will not permit their borrowers to accept people receiving benefits, despite the fact that 40% of all households in the UK get some housing benefit.
Nationwide had banned landlords with benefits tenants from borrowing from its buy-to-let subsidiary, The Mortgage Works. However, it reversed the decision after publicity, and together with Lloyds is the only major buy-to-let lender that explicitly permits borrowers to let to tenants receiving housing benefit, according to Shelter.
Shelter says that lenders who fear they will be at risk, because landlords will not be able to meet their mortgage payments if their tenants fall into arrears, are overstating the problem.
It says that with four in ten tenants receiving housing benefit, only one in ten landlords report arrears.
Shelter also says that it is a difficult policy for lenders to enforce, because tenants who do not receive housing benefit at the start of their tenancy may have to apply for it later. As a result, many landlords will be breaking their mortgage conditions.
Shelter is also campaigning for lenders to change their terms and conditions, criticising them for not allowing landlords to offer longer tenancies.
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Comments
http://england.shelter.org.uk/campaigns/evict_rogue_landlords/rogue_landlord_watch
have a look at this map to see how Shelter are outing convicted landlords.
Funny how there is not enough evidence to do the same for Rogue Agents, perhaps they will come to see that on the whole managed properties are good properties
Do you have a link to more details please Ros?
I can't find details of this campaign on the Shelter site.
"Now Shelter says that other lenders must follow suit."
Excuse me Shelter but seriously who do you think you are?
What authority do you have to make these demands and enforce them...that's right...NONE!!!!
Shelter do one!
Its not the banks they should be speaking with, its the local authorities. The LA's advise their tenants not to move out when the landlord wants the property back and instead wait for a court bailiff to kick them out as they have no duty to rehouse them if they leave voluntarily. Until this changes no right minded landlord will accept LA tenants. Currently due to the gov intervention on capping rents (which I totally agree with) we have a tenant who has decided to only pay 1/2 the agreed rent. We took court action, 8 weeks later got an eviction notice and now 4 weeks later have been told there is only one bailiff in town and he is off sick this week so we will have to wait. Meanwhile, our tenant is lording it in a family flat in the heart of Westminster and keeps telling me the landlord has to buy him a new TV. He works on the 'never-never' and his wife allegedly can not walk more than 100 mtrs without aid (never seen a walking stick or wheelchair in the flat), so his whole family get to be housed c/o the tax payer. The tenant knows his rights and is taking the proverbial out of the landlord, the local authority and the government, however we are cast as the bad guys for wanting to evict him and his family, COME ON SHELTER, ATTACK THE PROBLEM PROPERLY.