Letting agent claiming I owe money because my housing benefit is paid every 4 weeks
Jamie_L
Online Community Member Posts: 28 Contributor
I'm having a serious issue with my letting agent, I'm in receipt of housing benefit but it doesn't cover the full amount, my rent is £4500 a year and housing benefit only pay £4420 leaving a shortfall of £80 per year for me to make up. I have been paying the shortfall of £6.67 per month.
My housing benefit is paid directly to the landlord because I have mental health difficulties and unusually they pay in a 4 week cycle, making 13 payments per year instead of 12.
This leaves me looking like I'm accumulating around £27 a month in arrears, but this isn't the case and these arrears will be cleared when the 13th payment is made.
Sadly the letting agent isn't accepting this and we have been going back of forth for the last few weeks trying to resolve things, but they say since the money hasn't arrived yet I need to pay it.
Can they force me to pay this money even though it will be paid when the 13th payment is made?
I feel I'm being punished due to how my rent is paid, which I have control over.
Any help or advice is greatly appreciated
My housing benefit is paid directly to the landlord because I have mental health difficulties and unusually they pay in a 4 week cycle, making 13 payments per year instead of 12.
This leaves me looking like I'm accumulating around £27 a month in arrears, but this isn't the case and these arrears will be cleared when the 13th payment is made.
Sadly the letting agent isn't accepting this and we have been going back of forth for the last few weeks trying to resolve things, but they say since the money hasn't arrived yet I need to pay it.
Can they force me to pay this money even though it will be paid when the 13th payment is made?
I feel I'm being punished due to how my rent is paid, which I have control over.
Any help or advice is greatly appreciated
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Comments
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This is the issue that a lot of people have when claiming benefits because they are always paid in arrears and a LL will want rent in advance. When you moved into where you are now, didn't you pay any rent in advance? Landlords often ask for that.
When is that 13th payment due to be paid?1 -
Hello @Jamie_L
Welcome to the community! I am so sorry that your letting agents isn't being cooperative. Can I ask, have you got someone you can contact about the housing benefit? To show documentation with letting agent will get the payment and to show that housing pay it directly? Because if so, I'd say the letting agent has to take it up with housing then.1 -
@Jamie_LFrom the letting agent's perspective, the rent is likely due monthly and they expect to receive the full monthly amount each month, regardless of the housing benefit payment cycle. So there is a timing mismatch.I would recommend clearly documenting the numbers as you laid them out - the annual rent, housing benefit amount, your top-up amount, and how the 13 payments resolve it. Put this in writing to the agent so they can see you are fully meeting the obligation, just on a different cycle.Ask the agent if, given the guaranteed nature of the housing benefit payments, they would be willing to treat your rent as fully paid each month, with the understanding that by year-end it will be fully caught up. They may agree to this if you've been a reliable tenant.As a last resort, you could file a complaint with the letting agency's redress scheme if you feel they are being unreasonable. But hopefully a clear written explanation and some flexibility on their part can resolve this.1
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Thanks for the quick response!poppy123456 said:This is the issue that a lot of people have when claiming benefits because they are always paid in arrears and a LL will want rent in advance. When you moved into where you are now, didn't you pay any rent in advance? Landlords often ask for that.
When is that 13th payment due to be paid?
I have lived in the property of over 12 years, my previous home was also rented from the same landlord, when I moved I didn't pay a bond or advance. But it was fine for years, the issues really began just over 2 years ago when a new letting agent took over the admin.
I had the exact same problem with them initially, I may have even seeked advice about it here, eventually it was sorted out but this time I seem to be dealing with a "computer says no!" type. Who is flat out refusing to take anything else into consideration, the balance sheet say's I owe, that's all that counts.0 -
Thanks for replying so quickly, I appreciate it.Hannah_Scope said:Hello @Jamie_L
Welcome to the community! I am so sorry that your letting agents isn't being cooperative. Can I ask, have you got someone you can contact about the housing benefit? To show documentation with letting agent will get the payment and to show that housing pay it directly? Because if so, I'd say the letting agent has to take it up with housing then.
There is a customer support number for housing benefit, and it is definitely worth trying.
I should of said before but I have been a tenant with them for over 2 years, so they are aware of how the rent is being paid and that they will receive 13 payments a year, but the agent I'm dealing with is only looking at the balance sheet, which say's I owe.
I have suggested they contact the council, just waiting for a response.1 -
Thanks for replying, you've made some excellent suggestions.MW123 said:@Jamie_LFrom the letting agent's perspective, the rent is likely due monthly and they expect to receive the full monthly amount each month, regardless of the housing benefit payment cycle. So there is a timing mismatch.I would recommend clearly documenting the numbers as you laid them out - the annual rent, housing benefit amount, your top-up amount, and how the 13 payments resolve it. Put this in writing to the agent so they can see you are fully meeting the obligation, just on a different cycle.Ask the agent if, given the guaranteed nature of the housing benefit payments, they would be willing to treat your rent as fully paid each month, with the understanding that by year-end it will be fully caught up. They may agree to this if you've been a reliable tenant.As a last resort, you could file a complaint with the letting agency's redress scheme if you feel they are being unreasonable. But hopefully a clear written explanation and some flexibility on their part can resolve this.
I have tried many times to explain things as clearly as possible, breaking the amounts down yearly, monthly and weekly but there's just no reasoning with them.
They have history from the last 2 years (I've lived here for over 12 years with HB paying this way) where payments were made exactly the same and like you say, annually it works itself, but this time they're only going by what the balance sheet shows.
I do suspect the agent is lone wolfing it, there have been threats of taking the matter further with their boss and the landlord but nothing has happened, even though I welcomed it. When I asked what their complains process was, this was their reply; "Complaints come to me first then to the director". I'm not sure that's how it should work?
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@Jamie_L
You're correct in your suspicion that the complaint process described by the agent is improper. A legitimate complaint procedure should involve an impartial third party, not merely an escalation within the same organisation.It seems that the agent may be acting independently and making empty threats about involving their superiors or the landlord. The fact that nothing has come of these threats, despite your openness to such escalation, suggests that the agent may not have the support of their management or the landlord in this matter.When you inquired about the complaint process and received the response, "Complaints come to me first then to the director," it further indicates that the agency lacks a proper complaint handling procedure. This is concerning, as it implies a lack of accountability and an inability for tenants to have their grievances fairly addressed.Draft a formal complaint letter addressing the issue, your efforts to resolve it, and the agent's inadequate responses. Submit this letter to the agency's director. This establishes a written record and may encourage them to take your concern more seriously. If the director fails to resolve the problem, you have the option to escalate your complaint to the letting agency's independent redress scheme.
UK law mandates that all letting agencies hold membership in either The Property Ombudsman or The Property Redress Scheme. In your letter to the director, request that they disclose which of these two organisations their agency is affiliated with. Once you have this information, you can file an official complaint with the appropriate redress scheme if necessary.1 -
Thank you ever so much, this is incredibly useful information. I plan to do exactly as you say.MW123 said:@Jamie_L
You're correct in your suspicion that the complaint process described by the agent is improper. A legitimate complaint procedure should involve an impartial third party, not merely an escalation within the same organisation.It seems that the agent may be acting independently and making empty threats about involving their superiors or the landlord. The fact that nothing has come of these threats, despite your openness to such escalation, suggests that the agent may not have the support of their management or the landlord in this matter.When you inquired about the complaint process and received the response, "Complaints come to me first then to the director," it further indicates that the agency lacks a proper complaint handling procedure. This is concerning, as it implies a lack of accountability and an inability for tenants to have their grievances fairly addressed.Draft a formal complaint letter addressing the issue, your efforts to resolve it, and the agent's inadequate responses. Submit this letter to the agency's director. This establishes a written record and may encourage them to take your concern more seriously. If the director fails to resolve the problem, you have the option to escalate your complaint to the letting agency's independent redress scheme.
UK law mandates that all letting agencies hold membership in either The Property Ombudsman or The Property Redress Scheme. In your letter to the director, request that they disclose which of these two organisations their agency is affiliated with. Once you have this information, you can file an official complaint with the appropriate redress scheme if necessary.
It is such a relief to know that I do have recourse and I'm not just at the whim of some overzealous jobsworth.
I will keep updating this thread with any developments.0 -
Can you just pay the £27 and be done with this? Let their software do the calculations it wants with your kitty
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I wanted to do a quick update on my situation, just in case anybody else is has a similar problem.
I messaged the person who I thought was the manager of the agent I'm having the issue with and who had been mentioned as "being aware" in the emails.
And there's 2 things really, firstly they're no longer the manager (but do still work there in a consultancy role) and the person who the issue involves is now the lettings manager. And they completely backed their colleague and stated "This has gone on for too long and needs paying". So zero help.
I not sure how relevant this is but, I do have email from the previous manager from the 2nd of January this year outlining how my rent is made up, stating the correct amounts which completely contradicts what the new manager has said. And would show me in compliance with the requirements.
After getting no luck with messaging their manager, I have spoken with my councils housing benefit helpline and I got to speak to a very nice woman, who was really helpful. They gave me the contact details for a benefits advisor whom I have emailed outlining the issue, they also said they had never heard of a landlord/letting agent forcing a tenant to pay the arrears due to HB being paid in 13 installments instead of 12.
I have also contacted CAB, after being unable to get through to someone by phone I messaged through their online service. I don't know how much they can help with the rent issue, but I'm sure I'll appreciate their help when it comes to the complaint process.
Would anyone recommend contacting the letting agent and asking if this is a company wide policy for all housing benefit claimants to make up their arrears, or is it just me? (But I'd hate to give them ideas).
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@Jamie_L
It's unfortunate that the person you contacted was not able to provide any assistance, especially since they're now in a consultancy role and the person you have an issue with is the current lettings manager. It can be frustrating when it seems like no one is taking responsibility within the letting agency.However, don't be discouraged, you've reached out to your council's housing benefit helpline and found a helpful contact who provided you with the details of a benefits advisor. This is an important step in addressing the issue you're facing with the letting agent.Since the helpline representative mentioned that they had not heard of a letting agent forcing a tenant to pay arrears due to housing benefits being paid in 13 instalments instead of 12, this could indicate that the demand might not be a standard practice.The email of the 2nd January you have from the previous manager outlining the correct amounts of your rent is indeed relevant and could potentially resolve your issue. This documentation serves as evidence supporting your position and contradicts the assertions made by the new manager.Contacting the letting agent directly to clarify whether there is a company wide policy might be informative, but as you've identified, it carries risks. Instead of directly asking if the policy applies to all housing benefit claimants, you might phrase your inquiry more generally.For example, you could ask for clarification on their policies regarding rent calculations and payment schedules for tenants on housing benefits, without implying that you're willing to accept paying HB arrears. This can provide you with valuable information while minimising the risk of suggesting new ideas to them.
All the best MW
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Sorry, I should of been clearer, it's not just £27, it's that amount a month, also, along with the money I'm already paying towards the shortfall and the extra on top I would need to pay down the arrears.WhatThe said:
Can you just pay the £27 and be done with this? Let their software do the calculations it wants with your kitty
I'd be looking at paying between £45-55 a month and I've little faith they'll refund me when the Housing benefit makes the 13th payment to balance the book.
And due to being paid in arrears, what would happen to the final housing benefit payment if/when I leave the property? Would that be protected under a bond scheme?
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Sorry I should of made it clear, it's £27 a month, along with the money I'm paying towards the shortfall and the extra on top to pay off the arrears, I'd be looking at a figure between £45-£55 pcm.WhatThe said:
Can you just pay the £27 and be done with this? Let their software do the calculations it wants with your kitty
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It wouldn’t be protected by the bond scheme. However, anything owed to you from overpayment of the rent should be refunded back to you.Jamie_L said:WhatThe said:
Can you just pay the £27 and be done with this? Let their software do the calculations it wants with your kitty
And due to being paid in arrears, what would happen to the final housing benefit payment if/when I leave the property? Would that be protected under a bond scheme?0 -
Its exactly as poppy said, a typical rental agreement payment is in advance, benefits are in arrears. (this is best case scenario assuming HB is fully funding rent).
Your case highlights the problem of rent going straight from council to LL it has added this complication.
To me there seems two ways to resolve this that would perhaps satisfy the agent.
1 - You make up the difference for this year, and the 13th payment is treated as an extra payment for the start of the following year, meaning instead of arrears, you have a buffer that goes down a bit each month until £0 the final month, of which there is an extra payment again.
2 - Ask them to setup a billing system, that calculates any shortfall each month, and you have a direct debit where that amount is taken, the month where they get two payments from council, they would automatically send the extra to your bank account as it would be an overpayment.
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I have lived in the property of over 12 years, my previous home was also rented from the same landlord, when I moved I didn't pay a bond or advance. But it was fine for years, the issues really began just over 2 years ago when a new letting agent took over the admin.Given that the payment arrangement has been smoothly functioning for the 12 years you've lived at the property, it's strange that issues are emerging now. You mentioned not paying a deposit initially, which makes me wonder, did you sign a new contract with the current letting agency, or did your tenancy agreement simply roll over seamlessly when the new letting agent took over two years ago?
The absence of a deposit suggests it might have been a straightforward continuation of your previous arrangement. Clarifying whether you entered into a new contract is important. If your arrangement simply continued without a new agreement, you have solid grounds to argue in favour of maintaining the established 13-payment schedule. However, if a new contract was signed, they might have more flexibility to modify terms.1 -
I wasn't given anything to sign by the new agency. In fact, all I got was a hand posted letter (without envelope) through the letterbox, telling me of the change. Initially, I thought it was a scam and phoned the old letting agent to double check.MW123 said:
I have lived in the property of over 12 years, my previous home was also rented from the same landlord, when I moved I didn't pay a bond or advance. But it was fine for years, the issues really began just over 2 years ago when a new letting agent took over the admin.Given that the payment arrangement has been smoothly functioning for the 12 years you've lived at the property, it's strange that issues are emerging now. You mentioned not paying a deposit initially, which makes me wonder, did you sign a new contract with the current letting agency, or did your tenancy agreement simply roll over seamlessly when the new letting agent took over two years ago?
The absence of a deposit suggests it might have been a straightforward continuation of your previous arrangement. Clarifying whether you entered into a new contract is important. If your arrangement simply continued without a new agreement, you have solid grounds to argue in favour of maintaining the established 13-payment schedule. However, if a new contract was signed, they might have more flexibility to modify terms.
When the current LA took over there was some confusion over the rent. I spoke to housing benefit and they said, "the agent would need to phone HB to transfer over the payment or give me a new tenants agreement." The agent choose to phone and I assume had the 13 payment cycle was explained to them on that call because it hadn't been an issue until now.
For me the worst bit is they could of at least informed me they were going to change things in advance, instead of just sending emails demanding payment or accusing me of intentionally messing them around. It's the assumption that I'm fully aware I'm causing a problem, or worse I'm doing it just to be awkward, which really bothers me.
When the facts are I've had two managers telling me contradicting information for months about how much I owe, what I need to pay and how to put things right, but it's still my fault in their view, as you've said previously there is no accountability on their part. And sadly when they did finally decide to reach a agreement between themselves, it was in their favour, with no appeals.
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I have replied to everyone buy all my posts don't seem to appear straight away for some reason, I'll check back tomorrow0
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@Jamie_L
In the absence of a new contract, your existing tenancy continues under the same terms previously agreed upon, creating what's known as a periodic tenancy. This means the conditions established in the original agreement remain in effect.
Regarding the transition to the new letting agency, their failure to communicate any alterations to your payment schedule, along with conflicting messages from different managers, strengthens your position to maintain the customary rent payment practices you've followed for over a decade.
It is difficult to provide a definitive answer without knowing all the details of your original tenancy agreement and specific circumstances, it's important for you to assert your right to adhere to the established payment structure. Without a legally binding modification to your tenancy terms, you are entitled to maintain the status quo.
If the agency persists in being uncooperative or treating you unfairly, you have avenues for seeking redress. This could involve submitting a formal complaint to regulatory bodies such as the Property Ombudsman or Property Redress Scheme, or seeking advice from organisations like Shelter. Taking these actions can assist you in managing the situation with clarity and resolving any disputes efficiently.
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I'd like to believe that would be the case but would prefer to avoid it If I have the choice.poppy123456 said:
It wouldn’t be protected by the bond scheme. However, anything owed to you from overpayment of the rent should be refunded back to you.Jamie_L said:WhatThe said:
Can you just pay the £27 and be done with this? Let their software do the calculations it wants with your kitty
And due to being paid in arrears, what would happen to the final housing benefit payment if/when I leave the property? Would that be protected under a bond scheme?0
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