Tory MPs Claim Almost £3m In Housing Rent On Expenses

Tory MPs are putting their rent payments worth tens of thousands of pounds on taxpayer-funded expenses while cutting housing benefit for the poorest tenants – with many MPs renting out properties for profit. Between April and November 2020 – the most recent month for which figures have been published – Conservative MPs claimed almost £3m in housing rent on expenses. The Observer has identified 42 Conservative MPs who claim their own rent on expenses while at the same time renting out other residential properties for at least £10,000 a year in income. Read more on the Observer website.

https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses 

Rental Payments Will Be Included In Credit Reports

Tenants could find it easier to access finance such as mortgages, with a major credit checking company now including information about rental payments in its reports. Experian said it is adding the data to credit reports, enabling firms offering finance to take these payments into account in a similar way to mortgages. For some tenants, this could potentially help them jump on to the property ladder and make it easier to access other types of finance. The credit checking company said more than 150 social housing providers, local authorities and letting agents are reporting data in an initiative called the rental exchange. Read more on the Yahoo Finance website.

https://uk.finance.yahoo.com/news/rental-payments-included-credit-reports-230100820.html?guccounter=1

‘Crisis’ Warning With Rent And Mortgage Payments Near Parity

The amount being paid by private renters in England is approaching parity with mortgage payments having jumped more than 160% in less than a decade. Now, campaigners warn of a coming ‘rent crisis’ as the number of renters rises. Ten years ago, the amount of rent being paid was only 30%of the total handed over by homeowners. New analysis for Shelter shows the current figure pushing past 75%. Overall, the Shelter figures – not adjusted for inflation – show the total amount spent on private rent jumped more than 160% in under a decade – from £15.9bn in 2006 to £41.3bn in 2015-16. The total spent by home owners almost flatlined – rising just 5% from £52.1bn to £54.9bn. Read more on 24housing.

https://www.24housing.co.uk/news/crisis-warning-with-rent-and-mortgage-payments-near-parity/

UK Tenants Paid Record £50bn In Rents In 2017

The total amount of rent paid by tenants in Britain soared to more than £50bn in 2017, more than double the level of a decade ago, and may soon eclipse the entire sum paid out by homeowners for their mortgages. The figures, compiled by the UK’s biggest estate agency and mortgage broker, Countrywide, reveal the dramatic reshaping of the property market in recent years as home ownership levels have gone into reverse. Last year, tenants in Britain paid a record £51.6bn in rents, an increase of £1.8bn on the previous year and more than twice the £22.6bn shelled out in 2007. Read more on the Guardian website.

https://www.theguardian.com/money/2018/feb/12/uk-tenants-paid-record-50bn-in-rents-in-2017

Include Rent Payments in Credit Scores

Rent payments should be included when calculating credit scores to support tenants wanting to buy a home of their own. The Residential Landlords Association (RLA) found that 61 per cent of landlords would support such a move. At present, credit rating agencies do not routinely include rent payment history when calculating credit scores. This means a tenant can find it difficult to access a mortgage, even if they have a long history of rent being paid in full and on time. Including rent payment in this way would also support landlords, providing them with a more accurate assessment of a prospective tenant’s credit and rent payment history. Read more on the RLA website.

Will Tenants Ever Pay Their Rent By Smartphone?

With large numbers of social housing tenants without bank accounts and regular internet access, you'd be forgiven for thinking the launch of a new mobile money transfer service, Paym, would have passed the housing sector by without a second glance. But the growth in mobile payments is not just fuelling the latest consumer craze: it's also helping to bridge the digital and financial divide and becoming an important budgeting tool, giving residents choice, convenience and control over their finances. In 2012, a free app was launched which allowed social housing residents to pay their rent with their smartphone. To date it has collected more than £50m in council tax and rent payments, and can represent between 1% and 5% of a social landlord's total transactions – a significant figure in a sector where more than 60% currently pay their rent in cash. Read more on the Guardian website.