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

[Deleted User][Deleted User] Posts: 314
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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.....http://www.theguardian.com/money/2014/jan/04/buy-to-let-landlord-evicts-housing-benefit-tenants
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  • [Deleted User][Deleted User] Posts: 314
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    Welcome to Cameron's Britain...
  • David TeeDavid Tee Posts: 22,833
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    alan111 wrote: »
    Welcome to Cameron's Britain...

    a) There wasn't enough room for that in your first post?
    b) You think he'll reverse his decision if Labour get back into power?

    Welcome to more selective mudslinging from the Guardian more like...
  • Richard1960Richard1960 Posts: 20,334
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    It does sound like mud slinging but is it true or not.:confused::confused:
  • AnnsyreAnnsyre Posts: 109,398
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    alan111 wrote: »
    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.....http://www.theguardian.com/money/2014/jan/04/buy-to-let-landlord-evicts-housing-benefit-tenants

    He is not alone in making this decision. And why not? He is entitled to choose the type of tenant he wants.

    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.

    Last month Kevin Green, a landlord with more than 700 properties in Wales, said he may stop letting to people on welfare.
  • Drunken ScouserDrunken Scouser Posts: 2,645
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    I tell you what, our parasitical overlords are lucky the British pysche is a relatively restrained one. I'd pay good money to see what would happen to a French landlord who pulled a stunt like this.
  • David TeeDavid Tee Posts: 22,833
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    It does sound like mud slinging but is it true or not.:confused::confused:

    I'm sure it's true, Richard. I'm also sure the story is actually about a businessman taking a business decision about the reliability of East European tenants vs Single Mums on benefits. I appreciate that Priced Out and the Guardian are keen to make political capital out of it (Priced Out actually going so far as to misrepresent the landlord before calling him "heartless"), but Fergus Wilson's quote makes it very clear that his decision is an economic one.

    In many ways it's an inevitable consequence of the cuts and one that anyone could have predicted years ago. Landlords are not generally known for their beneficence.
  • TelevisionUserTelevisionUser Posts: 41,373
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    Buy-to-let property supremo shuts door on housing benefit tenants

    I can understand them wanting to evict persistent defaulters and non-payers of whatever background. However, it would be wholly wrong, and indeed prejudicial, to evict people on benefits if they are reliably paying their rent.

    I suspect this problem will only get worse with the introduction of universal credit where the DWP money goes straight to the claimant instead of the landlord. The trial pilot schemes have shown that a significant minority of claimants did not have a clue about budgeting and so they were spending any money that came into their account resulting in the build up of rent arrears. That does show the need for budgeting advice and support for claimants.

    http://www.bbc.co.uk/news/uk-wales-21725686
  • David TeeDavid Tee Posts: 22,833
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    Buy-to-let property supremo shuts door on housing benefit tenants

    I can understand them wanting to evict persistent defaulters and non-payers of whatever background. However, it would be wholly wrong, and indeed prejudicial, to evict people on benefits if they are reliably paying their rent.

    I suspect this problem will only get worse with the introduction of universal credit where the DWP money goes straight to the claimant instead of the landlord. The trial pilot schemes have shown that a significant minority of claimants did not have a clue about budgeting and so they were spending any money that came into their account resulting in the build up of rent arrears. That does show the need for budgeting advice and support for claimants.

    http://www.bbc.co.uk/news/uk-wales-21725686

    I agree 100%.
  • swingalegswingaleg Posts: 102,924
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    I thought landlords were 'over the moon' with having tenants on housing benefit......it's guaranteed income from the government

    In fact isn't housing benefit yet another scam for diverting public money into the hands of the politician's businessmen mates ?

    why do they not want tenants who unlock the door to guaranteed taxpayers money ?
  • AnnsyreAnnsyre Posts: 109,398
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    swingaleg wrote: »
    I thought landlords were 'over the moon' with having tenants on housing benefit......it's guaranteed income from the government

    In fact isn't housing benefit yet another scam for diverting public money into the hands of the politician's businessmen mates ?

    why do they not want tenants who unlock the door to guaranteed taxpayers money ?

    Tenants who don't pay their rent are not desirable.

    Without private landlords there would be thousands more homeless people.
  • Ethel_FredEthel_Fred Posts: 34,127
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    He nearly went bust a few years ago - and most landlords won't touch people on benefits

    But is he also going get rid of people in work who claim benefits?
  • AnnsyreAnnsyre Posts: 109,398
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    I tell you what, our parasitical overlords are lucky the British pysche is a relatively restrained one. I'd pay good money to see what would happen to a French landlord who pulled a stunt like this.

    Do they have housing benefit in France?
  • AnnsyreAnnsyre Posts: 109,398
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    Ethel_Fred wrote: »
    He nearly went bust a few years ago - and most landlords won't touch people on benefits

    But is he also going get rid of people in work who claim benefits?

    He is going to get rid of people who don't pay their rent.
  • Richard1960Richard1960 Posts: 20,334
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    Annsyre wrote: »
    Tenants who don't pay their rent are not desirable.

    Without private landlords there would be thousands more homeless people.


    Save for the fact in many areas private landlords are renting out ex council stock at much higher rentals .....................Now if the council still owned it and all that.;-)
  • swingalegswingaleg Posts: 102,924
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    Annsyre wrote: »
    Tenants who don't pay their rent are not desirable.

    Without private landlords there would be thousands more homeless people.

    My understanding is that housing benefit is paid directly to the landlord from the government/taxpayer......so the tenant can't default........it's a transfer of public money to private businessmen

    However I now see that this is going to change under Universal credit and the benefit will go to the tenant in future and it'll be up to them to pay the landlord

    Presumably this guy is getting ready for that change.......by getting rid of his tenants on welfare
  • swingalegswingaleg Posts: 102,924
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    [/B]

    Save for the fact in amany areas private landlords are renting out ex council stock at much higher rentals .....................Now if the council still owned it and all that.;-)

    that happens in my block.....some of the flats have been bought under Right To Buy and rented out at 3 times the rent that us council tenants pay
  • RickyBarbyRickyBarby Posts: 5,902
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    David Tee wrote: »
    I'm sure it's true, Richard. I'm also sure the story is actually about a businessman taking a business decision about the reliability of East European tenants vs Single Mums on benefits. I appreciate that Priced Out and the Guardian are keen to make political capital out of it (Priced Out actually going so far as to misrepresent the landlord before calling him "heartless"), but Fergus Wilson's quote makes it very clear that his decision is an economic one.

    In many ways it's an inevitable consequence of the cuts and one that anyone could have predicted years ago. Landlords are not generally known for their beneficence.

    And if a landlord would not take East European tenants ,he be called a racist.but other way round is OK>:(
  • [Deleted User][Deleted User] Posts: 4,074
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    Annsyre wrote: »
    Tenants who don't pay their rent are not desirable.
    This is not about evicting people for not paying their rent this is evicting people because they are benefit claimants on the assumption that benefit claimants will not pay their rent. Presumably because either benefit claimants are going to be trusted with the rent money rather than it being paid directly to landlords and he thinks benefit claimants are feckless or because benefits are being cut and he thinks benefit claimants will be unable to pay their rent.
    Annsyre wrote: »
    Without private landlords there would be thousands more homeless people.
    Would buy to let landlords somehow manage to pay their mortgages with no tenants paying them rent?
    Would they leave the housing empty or would they sell, if someone else buys it is it not likely to be occupied and so no more people homeless than before?
  • David TeeDavid Tee Posts: 22,833
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    RickyBarby wrote: »
    And if a landlord would not take East European tenants ,he be called a racist.but other way round is OK>:(

    That's not the angle. If single Mums on welfare were the reliable tenants and East Europeans weren't, they'd be the ones he'd be supporting. It's a business decision, nothing to do with any kind of isms (unless you want toss capitalism in there).
  • soulboy77soulboy77 Posts: 24,379
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    swingaleg wrote: »
    I thought landlords were 'over the moon' with having tenants on housing benefit......it's guaranteed income from the government..
    Before, the DHSS would pay the rent money directly to the landlord which was a kind of guarantee. But the rules were changed a little while back where the claimant can now elect to have the money paid to them with the intention that they then manage their own payments to the landlord. Of course some people on DHSS (I don't mean to tar all) for one reason or another don't priorities paying their rent and soon get into arrears.

    There is also the fact that there is a limit on how much the DHSS will provide for rental accommodation which means that landlords can earn more renting to non-DHSS families and individuals.
  • David TeeDavid Tee Posts: 22,833
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    The key question missing from the article is how many of the 200 issued with eviction notices were behind on their rent?
  • TimCypherTimCypher Posts: 9,052
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    Hmmmmmm, habitually, private landlords are heavily criticised on this forum for taking in those dependent on benefits - I've lost count of the number of times here I've seen 'landlords milking the state', 'corporate welfare' slogans thrown around here.

    It's good, surely, that some are going to desist from doing this, is it not?

    It *may* put pressure on the government to increase provision of social housing (surely the right solution for this problem?) if the private sector becomes increasingly out of bounds.

    Of course, IMHO, it should never have been 'in bounds' in the first place...

    Regards,

    Cypher
  • Sargeant80Sargeant80 Posts: 1,413
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    Landlords and no DSS has been around as long as I have.

    Landlords have always preferred private tenants and take those on benefit only if they have too.
  • Ethel_FredEthel_Fred Posts: 34,127
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    Annsyre wrote: »
    He is going to get rid of people who don't pay their rent.

    You didn't read the article then. He is getting ridnof ALL his benefit tenants even if they do pay the rent
  • Biffo the BearBiffo the Bear Posts: 25,859
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    This just shows that there needs to be much more regulation in the letting market. By itself, the concept of landlords refusing tenants on benefits is nothing new at all. But the flipside of that is that there are usually other landlords to go to.

    The problem with the Fergus duo is that they've hoovered up so many properties in their area that the alternatives are few and far between. I don't think any private entity should have the power to monopolise property availability like that.

    The grand irony, of course, is that if it wasn't for the BTLs speculating to accumulate, there would be a great deal more in the way of affordable properties on the market for young people currently trapped in the rent cycle. Economics 101.

    I don't know why governments are so afraid to do anything about it.
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