NatWest Drops No DSS

Commenting on news that NatWest bank plans to review its lending practices to address concerns that they prevent landlords renting to benefit claimants, David Smith, Policy Director for the Residential Landlords Association said:

“With increasing numbers of benefit claimants now reliant on the private rented sector for a home we welcome NatWest’s decision to review its lending practices.

“The RLA continues to urge the rest of the industry to do likewise so that private landlords are better supported to house vulnerable tenants.”

The RLA last week wrote to the Treasury calling for it to work with stakeholders to address the problem of banks preventing landlords with buy-to-let mortgages renting to benefit claimants.

It followed the case of Helena McAleer, a landlord from Northern Ireland, who had her mortgage revoked by NatWest because she was renting to tenants in receipt of housing benefit.

The RSA have also said:

The Residential Landlords Association (RLA) found that three in every five landlords (61%) with tenants claiming Universal Credit have experienced them going into arrears at some point.

In 2016, the proportion of landlords experiencing arrears from Universal Credit claimants was 27%.

Furthermore, the average owed by tenants in rent arrears grew by 49% over the past year, with the figure standing at £2,400.

ABC Note: The RLA also found regular delays affecting the alternative payment arrangement (APA) system, with landlords applying to have housing benefit paid directly to them waiting an average of two months for these payments to be organised by the DWP.

Image: The Residential Landlords Association

ABC Note: there are also variation in what people get under Universal Credit and Claimants that have requested payment to landlords have found this can take up to two months to affect.

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