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The last one standing - Local Headlines - Falkirk Herald

The last one standing - Local Headlines - Falkirk Herald

5 Tips for Renting with Local Housing Allowance

With the 2013 benefits changes now in effect, Housing Benefit has been getting a lot of coverage in the news lately. Some councils have trialled paying this allowance directly to tenants, whereas many still pay directly to the landlord.

But whatever the specifics, renting with Local Housing Allowance provides a challenge. You need to be a smart budgeter to make the benefit payments work as hard as possible, freeing up the rest of your income for other essentials such as food and bills.

So here we present five simple tips towards smart renting while in receipt of Housing Benefit, which should help you to make the most of your circumstances.

1: Budget in Advance

The basis of renting with Local Housing Allowance - or DSS, as it used to be known - is budgeting. It's important to get ahead on this even before you more into a property! Make a note of the rent and deposit levels, and check with your council how much benefit money you will receive towards these costs. Only then can you start to budget seriously. You can find your local council's contact details online at https://www.gov.uk/find-your-local-council

2: Keep Bills Down...

Housing benefit will only help you with rent costs - heating, power, phone and internet bills still need to be taken into account. Be flexible. Do you really need a house phone? Many mobile providers now provide all the call minutes you'll need for less than £10/month, if you get a rolling SIM-only deal. A property with decent insulation will save you shed loads on heating bills, so take things like EPC ratings into account.

3: ...And Shop Around!

This applies to energy bills too. Legislation currently in the works aims to clear up the complex tariffs offered by the "big six" energy providers, but for now you'll have to do your homework. Compare the offers carefully, and don't get sucked in by deals which seem too good to be true. In some areas, local 'energy co-operatives' may offer the opportunity to lower costs further by bulk-buying with some of your neighbours. Search online to see if there are any in your area - and again, check costs carefully!

4: Communicate with your Landlord

This is good advice in most rental situations, and it's no different here. Make your landlord aware of your benefits situation, including how much they can expect to receive each month in Housing Benefit, and how much you will have to provide for yourself. If you're in one of the trial areas where Local Housing Allowance is paid directly to tenants  then make sure it goes straight into your rent payments. Don't be tempted to borrow from this kitty to get you through cashflow problems - you'll only get into rent arrears, giving you further debts to pay back and souring your relationship with your landlord.

5: Track changes in benefits carefully

The current financial climate has made most matters of economy uncertain, and benefit payments are no exception. Each annual budget has the potential to shake up benefit payment levels, so keep an eye on the news around budget season to see what your Housing Benefit levels are likely to be for the following year; and if any adjustments are needed to your weekly spend, prepare accordingly. If your current lease is expiring and you're hoping to renew it, it's also worth checking with your landlord whether rent levels will be staying the same - this can affect the allowance which you're entitled to.

Getting by with Local Housing Allowance can be a struggle, but basic common sense and a low-cost lifestyle go a long way to removing some of the stress from everyday life. Your three best weapons in this fight are a sensible budget, good relations with your landlord, and a willingness to adjust your lifestyle when opportunities to save on living costs present themselves. With the right attitude, renting a property on Housing Benefit needn't be a stressful way to live.
 

Buy To Let Up Over 25%

The first quarter of 2013 saw a new high in remortgaging activity, with more landlords trying to raise enough capital to expand their portfolios and take advantage of higher yields.

Remortgaging accounted for 69% of all buy to let transactions in the last quarter, up from 43% in the last quarter of 2012.

High yields are encouraging many landlords to remortgage.

Another factor creating the increase may be the Funding for Lending Scheme, which is now beginning to improve mortgage availability by encouraging lenders to ease criteria and drop rates.

And on-going demands from Clydsdale Bank, RBS Group and Irish banks for landlords to refinance elsewhere have also contributed to the sharp increase in remortgaging.

Average property values for buy to let transactions increased over the course of the year on residential stock. This is particularly to do with the wider rise in house prices but also because investors are choosing to purchase property in the South East and other more expensive areas The average property values on transactions are over a 30% higher than they were a year ago.