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Labour controlled Brent council in London has taken the possibly-unique step of paying a landlord’s legal fees and rent to avert a section 21 eviction.
The issue revolves around the council’s almost complete lack of available social housing.
A briefing note from legal services supplier Legal for Landlords says: “The agreement involves the landlord continuing to provide the accommodation, with the council taking over responsibility for the payment of the rent.”
The case has come to light because of the involvement of a London’s lettings agency which handled the start of the process on behalf of its landlord client using LegalforLandlords.
Back in February of this year, the law firm made the application to Willesden County Court. In April, possession was granted.
There is however a backlog in the enforcement process with bailiff appointments often taking many months to be confirmed. Some councils have been telling tenants to ‘sit tight’ until the bailiffs arrive.
However Brent council took a different approach and in June the agent and landlord agreed to allow the council to pay the legal costs, cover the rent arrears and pay the rent going forwards.
LegalforLandlords says: “With many smaller-scale landlords, fearing the changes in the Renters Reform Bill, now leaving the sector, this action by might make them pause for thought.
“Is this a rare, isolated case of a council unable to prevent a homelessness case any other way? Or is it something that’s more widespread, a practical solution that could work for both private landlords and tenants alike?”
Sim Sekhon, managing director of LegalforLandlords, says: “It’s worth remembering that the private landlord in this situation agreed to the deal, but it could be that he or she had no real alternative? They were already out of pocket and facing a wait of many months for a bailiff. Suddenly there’s an offer made that seems to bring immediate relief and recompense. Is that a real choice?’
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Do I hear the word desperate 🤐🆘
Open door for scroungers to stop paying their own rent.
Totally agree Nick.
This is not something new, similar has happened in my area for a number of years though, I have never had a council take over responsibility for paying the rent though the same result is often done under the guise of private sector leasing. Cancel lise the property from the landlord and guarantee the rent. In my area the council use what’s called discretionary housing payment which is paid almost randomly at the discretion of the council to pay my tenant’s rent arrears. The councils have been given a big pot of money by the government to help renters who have run into problems. Before I start evictiing a tenant for rent arrears one of the things I do is see if the tenant can get discretionary housing payment to pay off their arrears. Discretionary housing payment unfortunately relies on the tenant to apply, even though we help them many would rather be evicted as they can present it to the council as being homeless and be rehoused by the council.
The other thing that one of my councils has introduced, Sandwell MBC, is a mediation service which is referred to as call before you serve CB4YS. The council, instead of telling tenants not to pay their rent, wait until they’re evicted, and they will be rehoused explain to the tenants that they will not be rehoused by the social sector if they are evicted for nonpayment of rent. This has drastically reduced my evictions in Sandwell.
I spoke to someone who worked for another council, and they introduced a similar mediation service, which reduced the number of tenants applying for homelessness by 80%.
Who can blame tenants when they know they can keep their rent, be evicted and be given a council flat. Of course you’ve never heard of this as the councils will vehemently denied that they do this, but anyone has been in the business will tell you they have had the same experience.
What do you expect when councils, one of the largest operators of housing and are in competition with the private sector. Many in the council are out to destroy the private sector and increase the demand for their own housing services. It’s a bit like putting Tesco’s in charge of all supermarkets, yet Tesco’s is exempt the legislation that applies to other supermarkets. Brent and many other councils run a campaign off attacking landlords, especially HMO landlords and then wonder why they’re short of private sector housing.
The housing system in this country is dysfunctional but benefits all who are involved except the poor tenant. Landlords are now benefiting from enormous increases in rent due to the housing shortage partly attributed to the way the councils have behaved but mainly down to government policy.
Jim HaliburtonTheHMODaddy
Jim, discretionary payment is only one off payment and only applies to those who are on housing benefit. Correct me please, if I am wrong
Ferey - DHPs can be ongoing. One of my tenants has received about £137 a month for nearly a year.
It used to be available for up to 3 months to give the tenant time to downsize into a property at LHA rent. Now that is totally unrealistic DHPs are more widely available for longer. The Council still like to think there is an end date or that the property is the cheapest available.
In my case the tenant had a 3 bed LHA entitlement which due to a child's birthday increased to 4 bed last week. She kicked her husband out a year ago but up to that point had been self funding for many years. LHA for a 3 bed is £825 and a 4 bed is £1100. The cheapest 3 bed available last year in the entire city was £1050 but it wasn't allowing claimants, children or pets. The cheapest one that might have considered most elements was £1200. She would have failed affordability anyway.
She was already living in a 4 bed for £1100 a month. The Council could see her benefit entitlement was due to increase this month anyway (unless she winds her son up so much he moves out and lives with his dad). Paying half the shortfall was a cheap, practical solution for the last year.
I have had dealings with Brent council. They behave like scammers.
True. Brent council team members appear frequently on Nightmare Tenants, Scum Landlords. They definitely seem to appear as scammers with one goal - support unscrupulous tenants to take over the landlord’s property.
Over 100 PRS landlords in my network have sold up their properties recently in Brent-Labour controlled scammer council, resulting in an increased homelessness. Best wishes to All Good Landlords.
I’m really sorry, but with the onslaught from everywhere Central Government, Local Government, National Charities, The Taxman and the court system, my mind is made up. I’m selling up, taking my money and putting it into a high interest account, and the whole bloody lot of them can sort the housing crisis out between themselves as I am no longer going to be cast as an “Evil money grabbing landlord” just because I was trying to bolster my pension.
Agreed Peter. We're only small scale, but have sold 4. Only 2 remaining - and these are the 2 relatively upmarket houses, but we'll keep them under review.
I'm doing the same Peter. Selling up and moving on....... Whilst it's still possible to do so!
Morning Peter,
Yes, I had a meeting with our FA on Tuesday where we discussed the sell off plan.
Been doing this for over 30 years. Self confessed excellent landlord with very well presented properties. I’m not having the p*** taken out of me any longer.
As you say, good luck we’ll leave you to it.
Peter, very succinctly put. I agree with your sentiments entirely. I am at the very beginning of getting 2 further properties to sell. I have already sold two.
My issue is that I have 3 excellent tenants and in a real quandary in how to approach this.
I'm also seeing if going Limited is a good idea or not.
Reading your excellent comment though makes complete sense to me.
Me too Peter, Scrubbing other people's faith and worrying myself sick no longer appeals!!!!!!!
This is a very rare case by the council, which highlights how much they're struggling to meet demand.
So how will the so called 'Renter's form bill,' benefit the same rogue tenant who is causing problems for the same LL in Willesden?
The council tends to have a double standard approach when dealing with the PRS LL's.
Firstly, they're very desperate to find homes for tenants, but when that tenant becomes a problem for the LL, they don't want to know.
This is where the problems begin, as the LL is all on their own, with no support network.
To add insult to injury, the tenant isn't paying rent, the LL is in arrears, so that LL has to serve a S21.
It's generally at this point when the 2 months notice has been served, that the council advises the same tenant to 'sit tight,' until the bailiffs arrive.
It's this cost that becomes the nail in the coffin for most LL's, as this is an additional £1,250+ in county court/bailiff fees, currently with a waiting time from 1 to 6 months plus, in addition to your rent arrears.
Whilst Brent council have provided a resolution for the LL, this is just temporary, as most LL will still want the tenant removed.
All of my properties are in Willesden Green. There is desperation in this area, my agents take between 30-40 calls and walk ins per day from those seeking Council accommodation (HB/Refugees etc). There is a stigma attached to Brent Council from the Red Ken days that a good majority of Landlords will avoid Brent’s social housing unit for a good many reasons.
Is that not just housing benefit paid direct to the landlord? Nothing new if it is.
Which can stop at any time without any notice
No one else has said it, so I will: I really don’t care if Scum bags become homeless, they don’t deserve anyone’s sympathy and are a blight on society.
I agree with you. These scumbags all have to be paid for by us to why they are given endless opportunities to claim. We should bring back the Workhouses where they can work for their food and shelter.
You said it Robert on behalf of all LL's on this forum and 90% of LL's in the UK.
We must note, that not all tenant's are scum. Let's just say we have professional, we have scum and then we have UC!
You're right also Nick, and we are actually the workhouses for the ungrateful tenant's who don't conform to the laws, but get new reforms from the laws!
Well said. Some human beings disgust me and all seem to be tenants! How strange!!!
Eyeing up a nice cottage in France with my sale money, can't wait to get out of being a Landlord and this disgusting scumbag filled country.....So glad my Grandparents can't see what a joke this country has become.
The problem is this isn't just applicable to scum bags. Plenty of hard working people in essential jobs are also affected. Care assistants, shop workers, van drivers, starter grade nurses, etc. Any of them with children are likely to qualify for UC and LHA. Unlike the spongers they also have to pay for transport to get to work.
The whole system needs a radical overhaul to reward work. The last thing we need is essential workers being forced to move from one Travel Lodge to another every few days. An easy starting point would be to unfreeze LHA so at least those who already have housing have a chance of being able to retain it without having to rely on the uncertainty of DHPs.
Abolishing Section 24 would allow portfolio landlords to stop increasing rents quite so much. Having to factor in the extra tax is having a significant impact on those landlords and in turn their tenants.
I thought the idea of benefits is to help people through tough times, not a means to live on and not work.
This isn't new or news.
Councils are fully aware how far they are in the mire and it's cheaper to pay off Landlords than to fund temporary accommodation. I would imagine even that is full to overflowing and hotels are now perhaps also reluctant to put up with it and work with the Council.
It may appear that the Councils are doing Landlords favours, or at least that's what they want you to think, but it's not managing the problem and just passing it from department to department.
When the benefit system is changed to stop paying out to scroungers and 'entitled' then we may see things progressing.
The PRS is being governed by the dropouts (perhaps they have got it right!)
Even with the council paying I would have the scum bag scroungers out of my properties
I have had this with the scruffy fkrs in my house. Told to sit tight by the council and shelter advised the same thing. The brass neck to stand and tell me it is better to go to court to get your house back?
Now council chasing me to repair the house that they destroyed, I will drag this out as long as I can until I get the court date.
The real issue here is because there is no properties the council will not move them but wait for the S21 or S8 to be served, then court date, then possession order to be granted, then bailiffs. Only at that point they can go to the town hall and then legally the council has to put them somewhere.
In the meantime cost me thousands in lost income, solicitor and court fees. Sorry forgot bailiffs too..
You forgot stress and lack of sleep?
You forget that in this twisted world we are the scumbags, and the scrounging good for nothings the victims!
Hi Franklin
Totally agree, whilst I only have 2 properties now with People on benefits, they are very nice hard working People and I would never suggest they come into the same category as the Scum bags I have experienced.
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