Eastern Landlords Association

News And Events

ELA meeting with Lord Freud, Minister for Welfare Reform

The Eastern Landlords Association, as the local organisation for residential landlords continues to support and advise landlords in the area, and to lobby the government on their behalf. This was well demonstrated, yesterday, October 17, when the CEO, Peter Davis was one of a select group of six representatives to have a meeting direct with Lord Freud, Minister for Welfare Reform at his London office. One of Lord Freud's responsibilities is for Housing Benefit. Some of these changes are already in operation, but the full force of the reforms will not be felt by tenants and landlords alike until next year.

There is a major change from January 2012, whereby any single person under 35 in receipt of housing benefit, will be restricted to being a sharer, rather than having a one bedroom dwelling. This will have the result of many losing their homes due to the reduced benefits, and a large increase in the demand for shared accommodation. Lord Freud agreed to liaise with local councils, many of whom are making it more difficult for private sector landlords to let this type of dwelling.

The ELA was pleased to learn that Lord Freud will discuss with mortgage lenders the implications of housing benefits on mortgage covenants and how the restrictions on buy to let mortgages for housing benefit could be avoided.

The majority of the meeting was spent discussing Universal Credit, which will start in less than two years. This will amalgamate six current benefits into one, paid direct to the household. The ELA has been campaigning for many years to give the tenant the option to have Housing Benefit paid directly to the landlord. As a matter of policy the funds are paid to the individual, and there have been far too many instances where this benefit has been used by the recipient on anything but the rent. Private landlords will now be involved in demonstration projects to be run in the social sector to look at direct payments under Universal Credit, with the aspiration that a common policy will be adopted across all the rental sector. Claimants will receive one monthly payment for the present six benefits. The government is looking at various methods of assistance for those who may struggle to budget. This will include, at the request of the ELA greater use of Credit Unions, as is already the case in some areas, and in particular Lowestoft.