Here is a message from Emily Rogers, who is a journalist:
Are you a lodger landlord who accommodates lodgers on housing benefit? Would you be prepared to share your experiences with me? (anonymously, if that’s more comfortable)
I’m a journalist who’s written a piece about the impact of one of the Government’s housing benefit cuts – extending the shared accommodation allowance to people under 35, which will force tens of thousands of people to move from one-bedroom flats into rooms in shared houses.
There is widespread concern that there isn’t enough shared housing to accommodate all these people and in response, a government minister has said he hopes lots of people will help by letting out spare rooms in their homes.
Given that the Government is keen to encourage thousands more people to help prevent a further increase in homelessness by opening up their homes to those on housing benefit, I’m keen to speak to those who already let rooms in their homes to people in this situation, as well as to the lodgers themselves, if possible. It would be interesting to see how such arrangements can benefit both parties, what kind of problems they can create and how they can be made to work. And is there anything the government could do to incentivise people opening up their homes to those in need?
Anyone interested can email me on gremily2001uk@yahoo.co.uk and I’ll get straight back to them.
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OK, as some of the below sounds negative, flag to the mast first: I’ve got to the point now where even if I didn’t need the money (usual redundancy-got-a-job-but-at-much-lower-salary sob story), I’d probably still have a lodger as my experiences to date have been positive.
I’m fairly relaxed about not insisting on standard 9-5 (lodgers so far have included two shift workers and one self-employed, all have been marvellous). However, although I can’t comment on the lodger-on-benefits experience question, I do feel like commenting on the incentives:
1. Suggest one or more of:
a – Government subsidised deposit and house/contents insurance for landlords who are willing to take people on housing benefits. People relying on benefits often can’t fund deposits and may be less likely to have references. Additional security for landlords would go a long way to removing the ‘no DSS’ prejudice. In a similar vein, it should be really easy for lodgers to take the option to have their rent paid directly to the landlord and acceptable for a landlord to ask for this (suitable statutory paperwork of course).
b – If it’s a single landlord/landlord otherwise eligible for council tax 25% reduction without a lodger, then if taking in lodger(s) on benefits and not going over the rent-a-room scheme tax limit (about £4.2K from memory?), keeping the council tax reduction would be nice – especially given low rates of LHA (see c and 3).
c – As an alternative to (b), increase maximum Local Housing Allowance for houseshares, even only by 10% would make a huge difference. My council’s LHA for house-sharers barely meets the ‘average’ rent (according to spareroom.co.uk) for a single room in my area and suspect this is the same nationally.
2. Legislation: Increasing lodgers’ rights to the same as tenants on Assured Shorthold Tenancies would be a huge DISincentive. If someone goes into arrears or otherwise causes problems that lead to “irreconcilable differences” I need to be able to throw them out of my home without having to get a court order – up to and including changing the locks at no notice (it’s not a profit making venture, I live there). The only lodger’s right that should be improved is the security of deposit (currently no mandatory requirement to use a ‘safe’ scheme: I always use a separate savings account for lodger’s deposits but am aware that not all landlords are good!)
3. Costs: if someone is on benefits then they are likely to be at home more, which means significantly higher costs for landlords. My self-employed/working from home lodger was great, but my electric and gas bills went through the roof: not that he was using unreasonable amounts, just that he was THERE, so TV/heating/his computer – even the kettle – were on much more often and it adds up!
4. Finally, I know it’s not an incentive, but hey, this is a comment, not an e-mail for Emily’s article:
Advice to potential lodgers: you will almost certainly need to compromise on your “requirements”.
See 3: your benefits will almost certainly not get you a room in an owner-occupied houseshare (as opposed to a ‘buy-to-let’, set up for multiple occupancy) with en suite, and, depending on the area, you may not be able to get off-street parking, or other amenities that so many ‘rooms wanted’ advertisers seem to think essential these days! Also, remember, that if someone is considering allowing you a key to their home, then it’s not a ‘public place’, so sorry, they do have every right to discriminate:
- landlords/ladies may only want to share their living space with lodgers of the same gender or orientation, and/or of similar age;
- they may not want babies or very small children to stay overnight or visit on a regular basis (I’d be worried about their safety in my house – no cupboard locks and cat is not used to kids and might bite!);
- very strict dietary requirements (whether for health or ethical/religious reasons) may be difficult to accommodate;
- the environment or occupants may not be suitable for (and in a private home don’t have to be adapted to) people with disabilities
The level of protection offered to DSS tenants in the Borough of Harrow and the councils reluctance to pay rent direct to the Landlord has resulted in total losses of £4790 over the last 18 months. I now have ended the agreements with every DSS tenant and will no longer be accepting any. The rent is not assured and the local authority refuses responsibility for the rent. The tenant is not black listed and can continue their habit of non payment without any problems. The rent paid is not market related at all and no Deposit is offered the Landlord has to cover all the risk and losses.
HELP?
I have had a lodger for 12 months, last month he said he has bugs in his room so I went to check. After looking at the website, they are bed bugs. I was ok with it as it can be dealt with, however, the room was was disgusting, plates of food and food in general in the room the pillows were coffee brown, the room smelled horrible and there was mold and mildew in the en-suite. I cleaned and painted the bathroom and asked him to leave as he never did an ounce of cleaning in the house for the 12 months, the kitchen was always cleaned by me and he never emptied the rubbish bin or bought his own toilet paper or cleaning products. I am so upset. I asked him to leave at the beginning of September and he left 30th September. I have had 2 sprays and 2 more to go bought a new bed and he his making threats to take me to court for his deposit back. He came in the house today with his key which he refuses to give back so have had the lock changed this evening. This has stresed me the point of nose bleeds and having to clean up his mess. This has cost me financially, where do I stand as I refuse to give back the deposit as the room was not left in the good state he moved in to and we had a verbal agreemant. I am within the rent a room guide lines regarding tax but he is now making threats to go with solicitors? Thank you for any advice.
@Jeanette Lodgers such as this certainly do not incentivise people to open up their homes and rent out a room!
Note however that it is one thing to threaten solicitors and legal action and quite another to actually do it. Assuming you have some proof of the poor condition the room was left in by your lodger you should be all right anyway even if he does go to court. But I suspect he knows this and won’t do it.