Evictions: Coronavirus- Parliamentary Written Answer

Helen Hayes: To ask the Secretary of State for Housing, Communities and Local Government, what steps he is taking to ensure that live-in lodgers are protected from eviction during the covid-19 outbreak.

Christopher Pincher: The provisions relating to extending notice periods under the Coronavirus Act only apply to statutory tenants and licensees who are covered by the Protection from Eviction Act. Some lodgers will be a statutory tenant or a licensee, others will fall outside of this legislation. Lodgers who can do so must continue to pay their rent. If they cannot they should speak to their landlord at the earliest opportunity. An early conversation between landlord and tenant can help both parties to agree a plan if tenants are struggling to pay their rent. If a lodger is being forced out illegally, they should contact the police and their local authority.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-01-19/140208

Quarter Of A Million Homeowners Advertise For Lodgers

Almost quarter of a million (233,697) homeowners have advertised for lodgers since the announcement of the increase to the Rent a Room Scheme tax threshold to £7,500 per year. This is an increase of more than 5.2% on the same period a year earlier. The data also reveals August was the busiest since records began in 2007, with 31,109 people placing ads for lodgers. London is the only major city where annual lodger rents are still higher than the new threshold, which kicks in on 6th April 2016. Read more on 24dash.

Landlords Could Be Fined £3,000 For Failing To Check Tenants' Immigration Status

Landlords will need to check the immigration status of any new tenants moving into properties from next February or face a £3,000 fine, the government has announced. These 'right to rent' rules are set to be introduced for all new tenancy agreements from 1 February 2016 in England. As well as traditional landlords, individuals who sub-let, and homeowners who take in lodgers, must also check the right of prospective tenants to reside in the country.  Landlords will need to check and retain copies of certain documents that show a potential tenant has the right to live in the UK. These include:

·         UK passport

·         EEA passport or identity card

·         Permanent residence card or travel document showing indefinite leave to remain

·         Home Office immigration status document

·         Certificate of registration or naturalisation as a British citizen.

Read more on the Daily Mail website.

Rent Rises Forecast After Tax-Relief Cut For Landlords

Britain’s two million buy-to-let landlords were left reeling after the chancellor slashed tax relief for property investors, provoking warnings of a potential mass sell-off of homes - or widespread rises in rents. From April 2017 landlords will no longer be able to claim tax relief worth 40% or 45% of the interest payments on their buy-to-let mortgages. Instead, the maximum tax relief will be set at 20%, although the change will be introduced over a four-year period. Property investors will also lose the right to automatically claim 10% of the rent against wear-and-tear costs. From April 2016, landlords will only be able to deduct costs they actually incur. But homeowners will be able to receive as much as £7,500 in rent from lodgers without having to pay tax, compared with the current ‘rent a room’ limit of £4,250. Read more on the Guardian website.

Number Taking In a Lodger Almost Doubled Over Past Few Years

The number of people taking in a lodger has almost doubled over the past few years as people look to supplement their income, according to a new study. Research by insurance firm LV= found that the average spare room generated more than £3,000 rental a year, rising to more than £4,000 in London. A survey of 400 UK homeowners revealed that a fifth of lodgers are aged between 36 and 50. Around 2.7 per cent of homeowners rent out a spare room, compared with 1.4 pre cent in 2009, said the report. Read more on the Daily Mail website.

Rent-a-Room Scheme – Parliamentary Oral Answer

Tim Loughton (East Worthing and Shoreham) (Con): What discussions he has

had with the Chancellor of the Exchequer on increasing the amount of housing

accommodation by extending the scope and level of the rent-a-room scheme.

Kris Hopkins: I meet ministerial colleagues regularly to discuss the

Government’s policy on housing. The rent-a-room scheme allows hard-working

householders to earn an additional £4,250 a year tax free. The average yearly rent for a lodger is below this threshold at £4,168.

High Court to Hear ‘Bedroom Tax’ Challenge

The High Court will today (15 May) begin hearing a series of legal challenges to the government’s ‘bedroom tax’. Lawyers representing 10 families who feel they have been discriminated against by the penalty for under-occupation of social housing will set out their arguments over the next three days. The three law firms representing the families argue they need all the bedrooms in their properties, and are unable to take measures to make up the shortfall in housing benefit by increasing their working hours or taking in lodgers. Read more on Inside Housing.

Bedroom Tax Is a 'Complete Failure'

The bedroom tax has been a "complete failure" in Westminster, councillors have claimed. According to the borough's Labour Group, the latest council figures show that of the 560 Westminster families receiving housing benefit who have one 'spare' room or more, only 19 have moved to smaller homes.

Additionally, council officers have confirmed that there are no cases where families have taken in a lodger to fill a spare bedroom. Read more on 24dash.

Social Rented Housing – Parliamentary Written Answer

Diana Johnson: To ask the Secretary of State for Communities and Local Government what progress he has made on plans to bring forward legislative proposals affecting social housing tenants who sub-let a room.

Mr Prisk (edited reply): The Prevention of Social Housing Fraud Act received Royal Assent on 31 January. The Act creates new criminal offences of unlawful sub-letting by secure and assured tenants of social housing in England and Wales and provides for the courts to make orders for the recovery from defendants of profits made from unlawful sub-letting.  The Act does not cover, nor is there any intention to legislate for, the quite different situation where social tenants continue living in their property but rent out a spare room to a lodger. All secure tenants have a statutory right to take in a lodger and assured tenants are able to take in a lodger subject to any restrictions in their tenancy agreement.

Social Rented Housing – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions what assessment he has made of the ability of tenants in the socially rented sector, under the terms of their tenancy conditions, to take in a lodger in order to reduce a drop in their income resulting from the under-occupancy penalty.

Steve Webb: The ability of tenants to take in a lodger is dependant upon the particular conditions of individual tenancy agreements. However, many local authority tenants and some housing associations have an automatic right to take in lodgers. We anticipate that many other social sector tenants will be granted such a right following a request to their landlord.

Stephen Timms: To ask the Secretary of State for Work and Pensions what assessment he has made of the consequences for the household insurance policies of tenants in the socially rented sector who take in a lodger in order to reduce the drop in their income through the application of the under occupancy penalty.

Steve Webb: An assessment has not been undertaken. We are changing the rules in universal credit so that the income received from taking in a lodger does not reduce a claimant's benefit. This will increase the options for those who are affected by the under-occupation reduction though the Government accept that, for a variety of reasons, this solution will not be appropriate in all cases.

Bedroom Tax – Parliamentary Oral Answer

Natascha Engel (North East Derbyshire) (Lab): The bedroom tax is forcing many people to apply for much smaller council houses. What is the Department doing to ensure that local authorities such as North East Derbyshire have the money to build smaller homes?

Mr Prisk: We are of course, together with others, putting some £19.5 billion into the affordable housing programme. However, we need to bear in mind the other side of the coin, namely people who face overcrowding while others live on their own in three or four-bedroom properties. I have no problem with the new size criteria; indeed, there are choices, such as taking in a lodger, that could actually help people to maintain their property.

Lodger Rules to Ease Impact Of Bedroom Tax

Tenants will be able to keep rental income from lodgers without it affecting their benefit entitlement under proposed rule changes. The major impact of the move is that it will help under-occupying tenants pay the bedroom tax. The change was made possible because the government has amended what counts as income in its draft regulations for universal credit.  Currently, claimants must declare income from lodgers. This can affect their entitlement to housing benefit, jobseekers’ allowance and income support.  Under the new regulations, from October 2013 tenants will be able to keep income from lodgers and retain full entitlement to benefit. The room let to a lodger will, however, be classed as a spare room and fall under the bedroom tax, which will be £14 per week on average.  Read more on Inside Housing.