Winchester Council has launched an innovative scheme linking with private landlords who will be encouraged to take tenants on housing benefit.
The ‘Winchester Lets’ scheme was given the given the go-ahead by the council last week.
The council will lease the property from the landlord for an agreed amount and put a tenant on Local Housing Allowance into the property.
The council will then pay the landlord 90% of the LHA plus up to £60 a week.
The scheme will cost £30,000 and is to be funded from a £190,000 grant from central Government which the council uses to prevent homelessness.
It is hoped that the scheme will attract private landlords happy to take a lower-than-market rent in exchange for guaranteed rent and no void periods.
.png)
Comments
Why is this news? Most councils in E&W have operated schemes like this for years and I dealt with them 20 years ago when they rented LPA Receivership properties (instead of the Society possessing them).
Long as the Landlord is prepared to spend whatever the LA demands to bring the properties to the same standard as their housing association partners no problm.
And accept a written undertaking and a no deposit scenario, or limited usage of the deposit if one is provided by the LA (because they will be nominating the hardest cases they have in terms of personal finance) no problem.
And to have endless arguments over getting any money out of them from the written undertaking they will give, and probably to let on just under a three year term, and at less than market rent - no problem.
This is why all rental properties in the UK don't go to LAs under these schemes - otherwise why not and who needs agents and their fees. It is the lack of fees of course that will compensate the Landlord for any reduced rent.