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TODAY'S OTHER NEWS

Nationwide is latest lender to oppose ‘No DSS’

The Nationwide is the latest lender to say it will not insist its buy to let borrowers enforce a No DSS policy.

In a statement to the media Paul Wootton, Nationwide’s Director of Home Propositions, says that everyone should be able to access a safe and secure home and No DSS restrictions denies this right to a group of people who are often in desperate need of somewhere to live. 

He adds: “Nationwide is categoric on this issue - we do not place restrictions on landlords that could stop them letting a home to tenants in receipt of benefits.

“Recent interest in this issue, most notably from the Work and Pensions Select Committee and Shelter, with whom we have worked closely for a number of years, caused us to review both our own historic lending, and the terms of those societies we took over during the financial crisis. 

“As a result, we identified and started contacting around 12,000 mortgage customers to reassure them that Nationwide has never and will never enforce any historic clauses, which might restrict them from letting to tenants in receipt of benefits, which their original mortgage terms may contain.

“The increased focus on this issue is welcome, as are positive moves made by others, and we urge everyone, including lenders, agents and landlords, to consider what they can do to end this unfair approach. Tenants need certainty and consistency and the industry needs a unified approach if we are to make a real impact.

“While it’s imperative that any blanket lettings restrictions are lifted, government needs to ensure that the benefits system works properly to provide confidence for landlords.”

Earlier this month the NatWest adopted a similar policy and last week Zoopla insisted that it would no longer carry any rental listings with the No DSS restriction - a move that has been praised by some landlord groups.

  • icon

    More virtue signalling.

  • Paul Barrett

    Yep the lenders are running scared now.
    Their ridiculous NO DSS policies will surely be abandoned due to the bad publicity.
    Of course that still DOESN'T make it viable for LL to take on DSS tenants.
    Govt would need to change some of their policies before LL were prepared to accept DSS tenants.
    As Govt will not be prepared to do this nothing much will change.
    Removal by lenders of the No DSS condition still isn't incentive enough for me to take on DSS tenants.
    So the next most important issue is for Govt to change the eviction laws so that ANY tenant in rent default may be booted out 14 days after 1st rent default with needing any court action if rent arrears aren't fully paid.
    Another one would be for the HB element of UC to be subtracted FIRST from the OBC calculation and for that plus any top up required to be paid first and directly to the LL with no 'CLAWBACK' ever allowed unless it could be proven the LL was complicit in any HB fraud.
    Just these 2 policy changes would very significantly change the PRS for the better and would certainly encourage many more LL to risk taking on HB tenants.
    Of course it will NEVER happen but we can all dream as LL can't we!!

  • icon

    It is the lenders right to remove the no dss ruling from their documents.

    It is my right as a landlord to refuse such prospective tenants.

    Not using the no dss label is easily overcome.

    All in all the changes will not make a scrap of difference to landlords or those on benefits.

  • icon

    Wonder what serupticious Threat the Govt made on Building Societies to make them change their Financial Policy ?
    Can see them being persuaded by a cup of tea and a biscuit at MHCLG !
    The answer ulitimately is No One-size fits all, and it obvious to anyone who's traded marbles as a kid, let alone a clue about business, is that it has to be based on financial considerations

    ( and the Govt freezing LHA allowance for 4 years hasn't helped ! )

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