Councils Pay Private Landlords Up to £4,000 to House Tenants

Councils are offering landlords cash payments of up to £4,000 to accommodate homeless families as a shortage of social housing forces authorities to court the private sector with taxpayer-funded incentives. Many councils in London and south-east England are now advertising cash incentives to private landlords. Westminster council in central London is paying up to £4,000 to landlords who take on council tenants. Tower Hamlets in east London recently advertised a £2,500 payment for one-bedroom properties to landlords agreeing to let to council-vetted tenants for two years and a £4,000 lump sum for homes with two or more bedrooms. Read more on the Guardian website.

Landlords Struggling To Re-house Tenants Hit By Bedroom Tax

Two third of landlords who took part in a CIH/Circle Housing Group survey said they would be unable to help any more than 20 per cent of their tenants downsize as a result of the under-occupation penalty, commonly known as the bedroom tax.  96 per cent said that despite offering cash incentives and practical help, a lack of available homes remained the biggest barrier for social housing tenants being able to move.  Measures being used include promoting lodging schemes and relaxing their stance on allowing tenants with rent arrears to transfer or mutually exchange.The survey also found that 84 per cent of landlords see the direct payment of housing benefit under universal credit as the biggest threat to their rental income. Download a copy of the report from the CIH website.

'Cash Incentive' For Council Tenants Moving Abroad

Council tenants in a London borough could be offered cash incentives to move abroad.  Harrow Council said offers of up to £20,000 could be made to those who were "already considering moving abroad" and it would be "entirely their choice".  It was one of the ideas presented to tenants and leaseholders at a meeting looking into freeing up housing stock. Moving tenants into smaller homes and into private accommodation were other options being considered.  The local authority said it had 5,000 homes, which was one of the smallest stocks of social housing in the capital. It stressed the ideas discussed were at a "very early stage".  Read more on the BBC website.

Landlord to Cushion Bedroom Tax Blow

A housing association plans to pay tenants the amount they will lose through the bedroom tax over three years as a lump sum cash incentive to downsize. Aster Group, which owns 27,000 properties, is considering taking the financial hit to protect tenants who would otherwise lose out under the government’s under-occupation penalty.  Although other landlords have announced they will offer cash incentives to tenants who move to smaller properties, Aster is understood to be the first to link it to the amount tenants actually stand to lose. Read more on Inside Housing.

Council Agrees Downsizing Pot

Richmond Council has agreed a pot of £150,000 to offer tenants a cash incentive to downsize after their children have left home.  The cabinet decided to put the cash towards its Sponsored Moves scheme, which is already up and running and has so far made more than 200 family-sized homes available.  It awards tenants who move to a smaller property £2,500 for every bedroom they lose as a result of the move, up to a maximum of £7,500.  The council may also provide help with the cost of removals and redecoration.  Read more on the Richmond Council website.