Universal Credit deposit

Just goes to show that the problem isn’t always with the tenant. The local council make taking on tenants claiming benefits just as distressing as any of the worst tenants.

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Uc are infact incorect as yhe money is recoverble from your tenants uc .
The deposit and the terms of tenacey dhould state that deduction for damafe and cleaning as this goverment money :moneybag:.
Speak to your insuance company if you have landlord insurance.

I guess you have a contract with the tenant, but not with UC. Therefore it doesn’t matter where the money came from, it’s a deposit and you should be able to claim from the protection scheme for anything you’re owed.
UC will have to get it back from the tenant or Rishi

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My understanding is that UC help with costs of moving and advance rent (which is the deposit!) it’s from the budgeting loan from the social funds. This amount is a LOAN to the claimant and is recovered from their benefits to pay off their interest free loan.

They should have paid off that loan by 26-52 weeks.

Looks like UC new recruits still needs further training on benefits and conditions of entitlement including the onus on debtors etc…

I’ve included a link: Budgeting Loans - GOV.UK

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If it has to be paid back to UC no matter what then surely this defeats the object of even having a deposit. What does it say in the tenancy agreement about the deposit? If it specifies that this is a damage deposit that is held for the landlord’s benefit to protect against losses, then point to the tenancy agreement and then point to the losses (take photos), and then state that by virtue of the contract created on the date of the tenancy agreement, you are entitled to retain these sums for you loss. Involve the deposit protection scheme in the process (there is an option for you to do this, you don’t simply have to hand the deposit back). This will place the ball in UC’s court to challenge your claim.

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You should negotiate with the Deposit Scheme, who should rule in your favour. Good lesson to all landlords, NEVER RENT TO PEOPLE ON UC. 3 yrs ago I had a tenant on UC who fell onto arrears. Took 8 months to evict her through Court. So far I have spent £6k on legal fees on top of £10k arrears and Court process has suffered multiple delays. I have learned that the law is weighted against landlords in favour of tenants. Better leave a house empty than rent to anyone on benefits.

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Agree, never trust the Council and anything to do with UC. Had a woman from Housing Dept of Council who was trying to find a place for families on their books. When I asked for reference from previous landlord, she said the Estate Agent had gone bust and there were no references. She kept telling lies or making excuses. Turned out all these tenants were sofa-surfing or living in hostels after having been evicted for non-payment of rent. Council were trying to find them a place. Once they are in your property, they start falling in arrears within a short time, but it make take 6-9 months to evict them through Court. Council people are actually dishonest.

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Not sure why you think tenants who aren’t on uc are any less capable of this. The law is hugely skewed in the tenant’s favor in the UK. It’s baffling to me that anyone becomes a private landlord here.

Did you ask UC if the money is to go back to them? I don’t believe they are being truthful.

In your tenancy agreement, it should state when the deposit will be held which generally would be for rent arrears, breakages, cleaning, etc.

I am a professional landlord with many properties and I let to benefit tenants where a lot of the time the council provides the deposit and rent in advance however this money then belongs to the tenant and when protecting the deposit, the tenant is the person the deposit belongs to. I have never had UC provide the deposit and if so, it would normally be a loan that the tenant pays back on a monthly basis.

I believe, whoever you talked to are taking you for a ride. The whole object of the deposit is for the security of the landlord should the tenant default on the tenancy. I would carefully read the TA in respect of what the deposit is for and also check what the Deposit Certificate says. I certainly would not pay it back to UC.

I would not even go to through the deposit resolution system as from experience, this is also in favour of the tenant. Let the tenant, council or UC apply for the deposit through the deposit scheme and only then you respond.

I personally as an experienced landlord would ignore UC or the council and let them take you to court or through the deposit resolution system and only then act.

the biggest problem is ALWAYS the council LIES. If the council want to give you a tenant always refuse

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You can definitely claim the deposit back if it has been protected, ignore the council they haven’t got a clue!

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As a UC tenant I was offered deposit and advance rent by UC in the form of a loan or another option is a discretionary payment from local council. I already saved my first months rent and deposit returned to me from previous landlord (no damage or arrears) so I didn’t need them but what I do know is that both these options are repaid BY THE TENANT at a set amount each week or month so I can definitely tell you that the deposit in the scheme belongs to you and you do not have to pay this to UC or the council as it is not your debt. As a UC tenant I want to say I totally understand why tenants like me are finding it impossible to find a good property because of the way the system is set against the landlords! These tenants who keep money ring fenced for rent should be prosecuted by law for fraud and theft yet and I have been contacting my MP with 2 letters a month asking him to get this addressed in parliament because it can not carry on like this!! You poor landlords having homes destroyed and left in thousands and thousands of debt through damage, arrears and court fees is absolutely disgusting!! In my letters to my MP I’m also asking that court proceedings for an eviction should not be given legal aid or at least a flat fee of no more than £200 because all landlords at the moment are in a lose lose situation it’s absolutely ridiculous because it’s people like me who are affected and I have been lucky that my current landlord took a chance but it took a lot of persuasion and I’ve been here 3 years no damage or arrears but I honestly do not blame landlords for refusing UC tenants because it is a ridiculous system! As for the current rent arrears that are being paid back, have you asked UC why these will not be deducted even after eviction? Because this is still a debt that is owed by them and does not disappear just because they move out!!
Also word of warning do not believe anything that UC tells you because the staff are clueless of so many of the rules due to the contact centre staff that man the calls are not trained in so many areas it’s unreal! My advice to any landlord would be to join a benefits group on Facebook because they have some fantastic experts on them.
I do hope everything goes better for you and pray you get some justice because it’s so unfair.

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Julie1 thank you for your reply and being honest. I have tried to be patient with my tenant but have got fed up as tenant not playing ball. I questioned UC why the arrears payments will stop when no longer in the property as tenant has received the rent money from them and never paid it to me. reply the money doesnt belong to me it is the tenants money and it would be down to me to sue her for the unpaid rent arrears, i then mentioned, so uc credit will have overpaid her by x amount and you are saying she gets to keep it to which reply was UC job is to look after the claimants. The system is totally messed up for landlords and i feel for the tenants because of this there are less private rents available

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It is absolutely disgraceful! I am registered disabled so unfortunately I don’t have the option to work now I only mention this because disabled people have to prove themselves over a period of time with assessments and hundreds of questions before we get any financial support, yet for those who are able bodied and could work to help themselves but it’s a choice for them no questions asked they pay them money to pay rent and even that now is a choice with no consequences. The amount of legislation put in place for private sector landlords is a disgrace and the way the government has set up a system that is destroying the private sector which they can’t afford to lose due to there not being any new local authority houses being built!! I’m in a private ground floor flat which I do love but as I’m able to get out a lot I’m desperate for a hone with a garden and I just can’t find a single landlord who will entertain me and although it’s very depressing to myself because I can’t blame the landlord because I don’t think I would rent to a benefit claimant if I had a home to rent. I am badgering my MP about this and I hope I can get heard (I’m even hoping to get a petition started) I know my voice is just too tiny but I need to plant the seed because surely they can see by now that the current system is an absolute failure and not only that but it’s shocking that they allowing millions of money to be used on whatever a claimant wants!! How can that be allowed to happen?!!
I must apologise for ranting on and on in your post but these cases infuriate me so much.
I wish you well Dawn and I do hope you get some justice I’d take them to small claims court if it was me as I believe it rather inexpensive to do it! The more cases that created in the battle to get these fraudulent claimant to pay up then the government has to take notice.

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