A council claims that 70 private landlords have signed up to a long-tenancy guaranteed rent scheme.
Milton Keynes council launched its 100 per cent rent guarantee and cash incentive scheme last year.
Landlords could receive up to £6,800 as a cash incentive and the council guarantees the rent if a tenant is unable to pay.
Now the council wants more landlords to join the scheme, by offering tenancies to families which were - in the words of a council statement - “previously made homeless by another landlord.”
Tenancies need to be for a minimum of six months to qualify for a cash incentive.
The scheme also offers landlords the opportunity to receive benefit payments directly and, for a year, free accreditation to the National Residential Landlords Association.
In publicity for the scheme MK council quotes a landlord - who isn’t named - as saying: “The incentive is extremely helpful and having no fees involved is a huge factor for landlords. For me the experience was very smooth.”
A council spokesperson adds: “We want everyone in MK to live in a decent home where they don’t have to worry about when the landlord might come knocking on the door asking them to pack their things.
“We’re working alongside landlords to ensure tenants get the best possible deal while ensuring we help these property owners at the same time.
“It’s a really good deal for everyone involved and I’d encourage landlords to get in touch if they’re able to help.”
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No don’t do it. After six months all guarantees are off and you will have the hassle.
Why don’t MK council put this money down as a deposit get a commercial loan and issue an AST like we have to do. They want the LL to take the risk whilst they put selective licensing fees and other council tax stipulations in hypocrites! And previously made homeless means they didn’t pay their rent
No thanks - I'm not renting out at LHA or giving up control of my asset to a council!
Anyone who falls for this is a fool.
Read the Serco contract for landlords ! Further, mainly labour controlled councils, have trashed council estates but refuse to punish the tenants who did it because they vote labour.
I currently let one of my properties via a far less generous Council scheme and have found it to be a positive experience. I told the person running the scheme what I was hoping for (someone who wouldn't constantly whinge about lack of parking). They came up with a single dad who couldn't drive. He's been in nearly 3 years, the flat looks like a proper home, he reports any maintenance issues appropriately, gets on well with the neighbours, etc. I used another scheme longer ago and didn't have any problems with it.
Councils are now dealing with a much wider range of homeless people. Often people with reasonable jobs who have been served with a Section 21 notice because their landlord has decided to sell. They tend to approach the Local Authority if they don't have enough in savings to cover a deposit or moving costs. Or their income is borderline on affordability referencing. They need a home quickly but don't quite fit a Lettings agent's criteria.
Councils seem to understand rentals at the LHA rate simply don't exist in some areas, so have Discretionary Housing Payments or hardship funds to at least partially close the gap.
Jo Westlake.
All this is well and good and even marginally encouraging, however the acid test is what happens when a tenancy goes wrong or you need your property back? How will you be treated then?
The standard response from councils is to coerce your tenant into demanding that you go to court for a possession order followed by a bailiffs order. The process takes months, is riddled with ‘trip wires’ and will cost you a fortune. Then if your tenant is not so good and mis treats your property, what then? Will the council pay to put things right?
Mistrust of Local authorities is endemic throughout the PRS and for very good reasons.
Tenants that have already been evicted by a landlord and rents restricted to LHA rates ? LOL
The article doesn't mention the rent is restricted to LHA.
There is certainly no expectation of PRS rents being that low in the areas I operate in.
The article may not mention it but I'm sure the rent will be restricted to LHA rates
Andrew - my experience has been that Councils are far more realistic these days.
When I accepted the single dad 3 years ago I was concerned the rent was £40 a month more than his LHA entitlement. The Council attitude was it was the cheapest property available so it was the best they could do for him. One way or another it would be made to work. I don't know exactly how much of the shortfall they pay as I get my rent directly from the tenant. His circumstances have evolved during the 3 years.
In more recent conversations with the Council they've asked if I've got anything else available. I've said nothing at anywhere close to LHA. At which point they said they had a stream of people approaching them who are fully self funding with no expectation of benefit level rent. They just want a long term home so their children can settle in school.
All I can say then Jo is you must be dealing with a very good council housing department
Discretionary benefit
Exactly Jahan very 'discretionary' I would think
Jo
What is your written contract with the council ?
It appears when your cheap mortgages expire then you will be underwater, is that right ?
Edwin
You clearly don't understand there are numerous different versions of Council schemes. I don't let the property to the Council, I let it to a tenant who came via a scheme set up by the Council. They match landlords with potentially suitable tenants. They do a full budget assessment of the tenant, make sure they're claiming any benefits they may be entitled to and either pay the deposit or provide a deposit bond if the tenant doesn't have the ability to fund it themselves. Then it's a standard landlord/tenant relationship with the added bonus that the Council will step in if there are any problems. My tenant occasionally needs budgeting advice but that's mainly because fortnightly pay is totally incompatible with UC.
Why can't councils simply offer 3-5 year leases Direct to landlords bypassing the middleman (Lettings Agents). Why must landlords rely on unscrupulous letting agents and other middleman.
TBH Kamran I would trust an agent over a council any day of the week
Councils do deal direct with landlords.
If the council did a 3-5 year lease then the council would have to pay the rent regardless and put right any damage and do maintenance and that’s why they don’t want to do it
More Marxist ideology by the back door.
We need far less government involvement in our daily lives not more.
Government, besides being a neccessary evil, is worse than useless in everything it does. If it cant run.things its involved itself in already why encourage its destructive influence any further?
When we get to local council level government the situation is even worse.
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