Landlords blast report findings.
Private landlords should support tenants on benefits - not shun them
Award-winning landlords Phil and Mark Stewardson have hit out at findings survey which show only 18% of private landlords will let to LHA tenants on benefits.
The brothers, who have a portfolio of 127 domestic and commercial properties across the West Midlands, blame Government Austerity Measures and lenders’ paranoia for fuelling the attitude.
Phil, 49, said: “We let out over a quarter of our 90 residential properties to tenants on benefits, the vast majority of which have suffered severe misfortune and will only be a benefit applicant whilst they rebuild family life and career. A good tenant is more important than the maximum rent the property can achieve, and in my experience tenants on benefits are more reliable and take better care of the property.
“Denying these tenants is making it very hard to obtain accommodation, this will force more tenants into temporary accommodation, such as Bed & Breakfast which is massively more expensive to the taxpayer and very unpopular particularly with families.”
The study, conducted by The Online Letting Agents, also revealed that 82% of landlords believe LHA tenants do not care for the property in the same way as private tenants and the majority of landlords (80%) believe that LHA tenants are much more unreliable than private tenants, when it comes to rent arrears.
But Stewardsons claim that over their 12-year history of letting to the residential sector, they have found the majority of LHA tenants to be as respectful of properties as professionals.
Phil, said: “The one downside is that you are dealing with people on tight budgets so If there is a problem the landlord will have very little recourse, the flipside of this is that many LHA tenants really respect the properties, they are grateful to be given a property that’s maintained to a good standard and in many cases do their own small maintenance jobs and keep their properties in immaculate condition.
“Amongst fellow landlords we have seen a dramatic rise in those worried that letting to LHA tenants is becoming too risky. To hear that a survey claims only 18% of landlords will now accept LHA tenants is alarming. Some lenders specifically prohibit LHA tenants, but the biggest culprit of all is the Austerity Measures and the uncertainty about how much further they will be extended and to which tenant groups.
“Our longest serving tenant is an LHA tenant. He is a tenant with a disability and has been with us 17yrs, we have numerous others who have been with us 10-years plus; one who came to us as a benefit tenant following relationship breakdown went onto study and gain employment in education and finally buy their rental property from us, we now also house that tenant’s child and grandchild.
“There are many different types of benefit, Working family tax credit being the most common for low paid or part-time workers, many landlords who are thinking they have professional tenants may well be receiving part of their rent from a benefit payment, and even their current professional tenants are only a paycheck away from becoming a benefit tenant.
“It’s far more important to us how someone lives and how they present themselves. If they come to our office for an application form and are clean and tidy there’s a good chance we will offer them a property. We will then credit check them and if there any issues we will try to understand why, potentially ask for a guarantor and may visit them where they currently live, because how they live now is a great indicator of how our property would look in 3 months time.”
ends
Sent by jwc on behalf of Stewardson Developments
For more info/interviews etc: john@jwcpr.com / 0161 381 0184
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