INTRODUCTION

The Homes For Ukraine Scheme was launched on 18th March, 2022, as part of the UK’s efforts to address the humanitarian crisis emerging In Ukraine following the Russian invasion. It was designed to allow British families to provide Ukrainian refugees with a safe place to live while they established themselves and adjusted to life in the UK. Refugees were not granted official “refugee” status, nor would they be “lodgers” in our homes, but rather “guests”. These terms are important as it allowed the Scheme to be implemented quickly and circumvent many of the legal and practical complications arising from having refugee status or being a lodger.

For sponsors, the Scheme would run for up to 12 months, and a minimum of 6 months, during the course of which they would receive a payment of £350 per month by way of a thank-you and in recognition of the costs incurred in undertaking sponsorship.

Fast-forward to August, 2022, and with the initial Homes For Ukraine Scheme 6-month sponsorship agreement coming to an end, many people are seeking information and guidance as to what happens next for them and their refugee guests. How can our guests move on, into their own accommodation?

While there is a great deal of information available online, it is proving very difficult to find a concise summary of the information needed to help our guests move on. In this document we have tried to pull together some key information from a range of online sources to enable sponsors and guests to make an informed decision about their next steps.

We hope you find this useful, even if only to identify and point you at source documentation containing the detailed information you need, whether you are a sponsor or a guest.

CAVEATS

Whilst we have endeavoured to make this document both readable and accurate, it is up to the reader to verify the information from the source materials, for which I have tried to provide links, or by contacting the relevant bodies. These include:

  • Job Centre
  • Citizens Advice 
  • Shelter

Another caveat that we would make is that information relating to Local Authority services should be checked with your particular LA. Councils can differ greatly from one another in the support they provide to those in search of rented accommodation, and in the support available to Ukrainian refugees. So please contact your Local Authority Refugee and Housing Teams if you have any concerns regarding what they can offer. This can range from rematching to social housing, deposit bonds and guarantees.

OPTIONS AT 6 MONTHS

The initial Homes For Ukraine Scheme asked sponsors to provide rent-free accommodation for a minimum of 6 months. These are the options at 6 months:

1.  Sponsor agrees to extend the existing arrangement for a further 6 months (until the end of the Thank-You payment period). In which case, carry on with life as usual. 

2.  Sponsor agrees to extend by converting the arrangement to the government’s Rent A RoomScheme (or similar). The guest will then be obliged to pay the required rent, for which assistance can be obtained via Universal Credit.

3.  Sponsor requires their guests to move on.

The government has asked that sponsors give guests two months’ notice if they are unable to continue their sponsorship, so they have ample time to seek alternative accommodation.

If the sponsor requires the guest to move on, there are the following options:

1. Sponsor/guest find private rental accommodation.   Advise the LA of the change of address and check if there is any assistance with deposits or rental guarantees (unlikely). Claim housing costs under UC and Council Tax relief.

2.  Local Authority rematches the guest for a further 6 months minimum.   The LA will need to switch the thank-you payment to the new sponsor, having verified that they meet the safeguarding and accommodation criteria. The LA is supposed to have access, via the Palantir Foundry system, to people in the EoI category – ie: those who have registered with the government but have not matched and are classified as having shown an “Expression of Interest.” The LA can call on their EoI list for potential matches.

3.  Local Authority finds emergency accommodation (B&B, hostel, cheap hotel).   This is the most likely short-term outcome as there is a general lack of social and private rental property, particularly for those with limited means. It remains the LA’s responsibility to find suitable accommodation, but that could take a long time. Emergency accommodation is often of poor quality, restricted in terms of cooking facilities and insecure.

4.  Local Authority finds social housing for the guest.   This might be possible for larger families, who will be rated as more urgent than smaller families. However, there is a chronic shortage of such property across the whole country – worse in some areas than others. Therefore this is a very unlikely outcome, at least In the short- to mid-term. 

5.  Sponsor/guest find a rematch and advise the Local Authority.  The council will need to switch the thank-you payment to the new sponsor, having verified that they meet the safeguarding and accommodation criteria.

It is fair to say that, as of 04/08/22, the government have not made public how they envisage the scheme evolving. Lord Harrington has said they will be writing to sponsors approaching the 4-month mark in their sponsorship to ask them to extend it for a further 6 months. However, beyond this nothing is clear. In particular, there appears to be no plan, as yet, for what happens after 12 months, when the thank-you payments are currently planned to end.

OPTIONS AT 12 MONTHS

The initial Homes For Ukraine Scheme arrangement envisaged sponsors providing rent-free accommodation for up to 24 months, for which they would receive a “thank you” payment of £350pcm for the guests first year in England and £500pcm for the guests 2nd year in England. This payment ceases after 24 months, leaving the following options:
 
1.  Sponsor agrees to extend the arrangement but without the £500pcm. Carry on with life as usual.
2.  Sponsor agrees to extend by converting the arrangement to a rental agreement, such as the government’s Rent A Room Scheme. The guest will then be obliged to pay the required rent, for which assistance can be obtained via Universal Credit.
3.  Sponsor requires their guests to move on.
 
 

RENT A ROOM SCHEME

In option 2 – whether at 6 months or 12 months – the sponsor becomes a “resident landlord”. This means they have let out part of the property that is their only or main home. Resident landlords have certain rights and responsibilities:
  • They are responsible for keeping the property safe and in good repair
  • They may be able to earn £7,500 per year tax-free under the Rent a Room Scheme
  • They can give less notice to end a letting than if they rented out the property as a whole
  • A tenant or lodger doesn’t have the right to challenge the agreed rent.

The Rent A Room Scheme allows a host to rent out spare accommodation in their home and receive up to £7,500 in rental income, tax-free. The income does not need to be declared to HMRC. Note that a landlord cannot use the scheme for homes converted into separate flats or for unfurnished accommodation.

Hosts can use the scheme if:

  • they let furnished room(s) to a lodger
  • the letting activity amounts to a trade; for example, if the property is run as a guest house or bed and breakfast business, or provides services, such as meals and cleaning

Hosts cannot use the scheme if the accommodation is:

  • not part of their main home
  • not furnished
  • used as an office or for any business — they can however  use the scheme if the lodger works in the property in the evening or at weekends or is a student who is provided with study facilities
  • in their UK home and is let while they live abroad.

Hosts don’t have to be a homeowner to take advantage of the scheme. If they are renting they can also let out a room to a lodger, as long as their own lease allows them to do so. While it allows hosts to earn up £7,500 a year before they need to declare it for tax, the income they get might affect some means-tested benefits. If they receive Universal Credit, any money they get from sub-tenants and lodgers under the Rent-A-Room scheme will not be counted as income up to the tax-free allowance of £7,500. This means it is a great way to supplement host income.

 
There are several checks that need to be performed before taking in a lodger: 
  • If the host owns the property and has a mortgage, they will need to check with their mortgage lender to make sure they are allowed to rent out a room under the terms of their mortgage contract. 
  • They will also need to check with their home insurer if it is allowed under their terms.
  • If the host is themself a tenant, they will need to ensure that their lease allows them to take on a lodger.
  • If in doubt, talk with Citizens Advice about the scheme. It may be more advantageous to opt out of the scheme, for example, if you have significant expenses, as these cannot otherwise be offset against the Rent A Room income. 

The Rent A Room Scheme may be a sensible way to move forward as a replacement for Homes For Ukraine sponsorship.

More information:

HOW MUCH CAN BE CLAIMED IN UK HOUSING COSTS (OR HOUSING BENEFIT)?

Whether unemployed or on low pay, guest may be able to get assistance with the cost of rent from DWP as “Universal Credit Housing Costs”. The maximum amount that can be claimed via Universal Credit is based on the LHA – Local Housing Allowance. This allowance is based on the size of the household, in terms of age and gender mix, from which a maximum number of bedrooms is computed, and the physical location of the property. Note that the property rented does not have to have this number of bedrooms, it is merely a tool for calculating a “reasonable” rent. One issue with the LHA is that it has not kept up with the inflation in rents.
 

How is the number of bedrooms worked out for LHA?  You fill in the online “bedroom calculator” and it provides this information https://lha-direct.voa.gov.uk/bedroomcalculator.aspx

What is the LHA maximum claimable housing cost?

After working out the number of bedrooms, complete this online form: https://lha-direct.voa.gov.uk/

HOW TO CLAIM HOUSING BENEFIT

To find out how to claim Housing Benefit – click this link
 

PRIVATE RENTAL – GUEST SPECIFIC INFORMATION

As with social housing, private rental housing can be hard to come by, and there can be a number of potential tenants vying for the same property. Also, the more desirable and convenient the location, the higher the demand and the cost.  It’s advisable to widen your search area to find suitable accommodation.
 

Private landlords and their agents will normally need evidence that the tenant is a safe risk. That could mean several things. You may need all or some of these:

  • Hosts can provide character references
  • Good credit history
  • Solid long-term employment prospects
  • Sound employment history
  • Substantial deposit (anything up to, say, 6 months’ rent)
  • Rent guarantor
  • Not claiming Universal Credit
  • Sell Yourself (bearing in mind it is a competitive market)
  • … and others
Prove You Have a Right To Rent

The landlord must check the “right to rent” for anyone renting their property as their main home.

Someone has the right to rent if they are over 18 and hold a BRP (or used the Immigration ID Check

app to establish their identity). It is the duty of the landlord to view the tenant’s right to rent details online, for which they will need a share code and the tenant’s date of birth. Use the following links for more information:

“Sell yourself”

There is always competition for private rental accommodation in Surrey.  It is a good idea to work out how to “sell yourself” to the agency or landlord.

 

You need to be able to convince the landlord that:

  • You are the perfect match for the property.
  • You have the resources and income to pay the rental.
  • You are able and happy to commit to the rental period (it could be 6 months or a year)
  • You are reliable, and will not disturb neighbours or cause any issues for the landlord
  • You have good job prospects (if appropriate)
  • Your children are well-behaved and responsible.

That sort of thing. It helps if:

  • You are a non-smoker
  • You have no pets
  • You are a professional person
  • You are self-employed, and can demonstrate your work is in high demand
  • You have references from your employer, happy customers (if self-employed) and your UK sponsor.

You could also ask your sponsor to help by acting as your advocate, assuming their English is better than yours(!).

How Do I Build My Credit Score?

 

If you can, you should start to build a credit history as soon as you can. Steps that can help include:

 

Other ways of including rental payments in your credit history: using self-reporting:

  • https://www.creditladder.co.uk/
  • https://www.canopy.rent/

How Do I Build Up a Rental Deposit?

Deposits can be quite substantial these days. If you do not yet have a good credit score then you may be asked for as much as 6 months’ rent as deposit in advance.

There is no simple answer to building a deposit, but here are some things to think about:

  • If you can save from Universal Credit and/or wages, do so. You could even think of opening a separate bank account and using a monthly standing order to transfer money to it, thereby helping build your credit score at the same time!
  • Save, save, save: Don’t spend money on trips home or expensive clothing and goods. Save for that deposit.
  • If you and your sponsor are happy to extend your relationship beyond 12 months your sponsor will no longer be paid but could use the government’s Rent A Room Scheme (discussed earlier) to collect rent from you. If you are on benefits you can claim the rent as housing costs.
Deposit Protection

Your landlord is required by law to protect your deposit in a Government-backed scheme. They make sure you will get your deposit back if you:

  • meet the terms of your tenancy agreement
  • don’t damage the property
  • pay your rent and bills

Your landlord or letting agent must put your deposit in the scheme within 30 days of getting it. At the end of your tenancy your landlord must return your deposit within 10 days of you both agreeing how much you’ll get back. If you’re in a dispute with your landlord, then your deposit will be protected in the Tenancy Deposit Protection scheme until the issue is sorted out.

You should be aware that when renting privately, it is normal to have an inventory, agreed by both parties, listing the condition of the property and its contents (for example scratches on a fitted hob), often with supporting photos.

The cost of replacing damaged items (beyond normal wear and tear) will normally need to be met by the tenant. Unless the item has been replaced to the satisfaction of the landlord, such costs can be deducted from the deposit at the end of the lease, along with cleaning costs (often, even if you have left the place spotlessly clean).

So be aware that you might not get 100% of your deposit back.

Who or What is a Guarantor?
 
You might need a ‘guarantor’ so you can rent a place to live. A guarantor is someone who agrees to pay your rent if you don’t pay it, for example a parent or close relative. If you don’t pay your landlord what you owe them, they can ask your guarantor to pay instead. If your guarantor doesn’t pay, your landlord can take them to court.
 
Your landlord might want to check your guarantor is able to pay the rent in the same way they’ve checked your ability to pay. For example, by carrying out a credit check. There is a legal requirement for a guarantee agreement to be in writing. The agreement sets out the guarantor’s legal obligations.
 

The guarantor may be liable for more than just rent. In many cases, a guarantee agreement also extends to other conditions under the tenancy – for example, any damage caused to the property. Landlords will usually want a guarantor who lives in the UK, as it’s easier for them to take legal action against a UK resident if they need to. If you can’t get a guarantor who lives in the UK, you might be asked to pay more rent in advance.

 
If you share accommodation with other tenants under one tenancy agreement, that is, a joint tenancy, it’s common for the guarantee to apply to all of the rent, and not just your share. It’s best to check the guarantee agreement carefully and ask the landlord or agent any questions if something is unclear. As soon as the agreement is signed, the guarantor is bound by its terms and conditions.
 
The guarantor’s liability ends when the conditions in the guarantee agreement are met. Many guarantee agreements are open-ended and will refer to liability ‘under this tenancy/agreement’. This means that liability could extend beyond the fixed period, to any extension, as well as to certain changes such as rent increases. If this is the case, the guarantor’s liability might continue for as long as the tenancy exists and will only end if the tenancy is legally terminated.
 

You can refer a possible unfair contract term to the local authority’s Trading Standards Officer, who should be able to provide further guidance. If there are unfair terms in your agreement, you can report your landlord to Trading Standards.

 
Sharing Accommodation with Others
 

One way to find affordable housing is to house-share or flat-share with others. Here are some things to be aware of:

  • Houses in multiple occupation (HMO) rules and constraints
  • Assured Shorthold Tenancy (AST) rules and constraints
  • You may need to compromise on your privacy to some extent. Think carefully before committing to a house/flat-share.
  • You should be aware of potential safeguarding issues when living with strangers. The Homes For Ukraine Scheme has checked your sponsors, but no such checks have been applied to your new housemates.
  • The wording of the tenancy agreement. Read the agreement thoroughly (ask your host to help if your English is not excellent). If you have any doubts consult the Citizens Advice Bureau or the charity, Shelter, for advice.
  • Be wary of subletting from another tenant. Your rights can be harder to uphold.
Sharing a House/Flat – Joint Tenancy Agreement (AST)
 

The most common way of sharing a house or flat is via a joint tenancy agreement (or AST). Every tenant in the share is responsible for paying the rent and sticking to the terms of the contract. Each tenant can claim housing benefits for their share of the rent.

 
An AST can get tricky when one of the tenants wants to leave before the tenancy is up – in a joint tenancy their notice technically ends the tenancy for everyone, so you are not guaranteed a replacement contract and flatmate. That said, most landlords are generally happy to let you find a replacement and sign a new contract.
Renting a Room Directly from a Landlord
 
You will have a separate agreement with your landlord, which means you are not responsible for any other tenants in the property. However, be aware that your landlord is the one who gets to choose new tenants if someone moves out, and they might not involve existing flatmates in the search if they want to fill the room quickly.
 
Renting a Room from a Live-in Landlord
 

In this form of tenancy your landlord (and possibly their family) lives in the property with you, so you are a “Lodger”. Since you are living in the landlord’s home it is likely to be of better standard and repairs done more promptly than if you were a tenant in another property. It may well be a cheaper way of renting, but the drawback can be compromising your privacy.

 
Other Forms of Tenancy
 

While AST is the most common form of tenancy, others to exist. You can find details here:

Finding Shared Accommodation

Here are some sites for searching for shared accommodation:

 


Council Tax

What is it?

Council Tax is an annual fee your local council charges for the services it provides. It is not a personal tax, but instead applies to your property, whether rented or owned. Normally you pay it in 10 monthly instalments, followed by two “free” months in February and March.

The services funded by Council Tax include:

  • police and fire services
  • leisure and recreation projects, such as maintaining parks and sports centres
  • libraries and education services
  • rubbish and waste collection and disposal
  • transport and highway services, including street lighting and cleaning, and road maintenance
  • environmental health and trading standards
  • administration and record-keeping, such as marriages, deaths and birth, and local elections.

How Much is it?

The amount you pay is set by your local council and depends on the “band” that applies to your property. Contact your local authority to find out how much the council tax is for your particular property.

Do I Have to Pay it?

If you own or rent a property you will need to pay Council Tax. However, if you live as a lodger in someone else’s home your landlord will be responsible for paying the Council Tax on his property.

Can I Get Help with it?

Yes. You could be eligible for a reduced tax bill if you are on a low income or claim benefits.

The help you get depends on:

  • where you live – each council runs its own scheme
  • your circumstances (for example income, number of children, benefits, residency status)
  • your household income – this includes savings, pensions and your partner’s income
  • if your children live with you
  • if other adults live with you.
Other Useful Links

Council Housing (gov uk) – https://www.gov.uk/council-housing

HMO Definitions, Exemptions and Special Cases – https://www.oxford.gov.uk/info/20237/hmo_definition_and_hmo_licensing/929/hmo_definitions_exemptions_and_special_cases

Homes for Ukraine –Council Guidance (gov uk) –  https://www.gov.uk/guidance/homes-for-ukraine-guidance-for-councils

Homes for Ukraine –Sponsor Guidance (gov uk) –  https://www.gov.uk/guidance/homes-for-ukraine-sponsor-guidance

Homes for Ukraine – FAQ –https://www.gov.uk/guidance/homes-for-ukraine-scheme-frequently-asked-questions

How to improve your credit score (HSBC) –  https://www.hsbc.co.uk/credit-cards/how-to-improve-your-credit-score/

Joint and Severally Liable Tenancies: a Guide for Landlords, Tenants and Guarantors –  https://blog.openrent.co.uk/joint-and-severally-liable-tenancies-a-guide-for-landlords-tenants-and-guarantors/

Joint tenancies (Shelter UK) – https://england.shelter.org.uk/housing_advice/private_renting/joint_tenancies

LHA “bedroom calculator – https://lha-direct.voa.gov.uk/bedroomcalculator.aspx

LHA rate calculator – https://lha-direct.voa.gov.uk/

MoneySavingExpert –all you need to know about credit scores! https://www.moneysavingexpert.com/loans/credit-rating-credit-score/

Private renting(gov uk) – https://www.gov.uk/private-renting

Private renting for tenants: tenancy agreements (gov uk) –  https://www.gov.uk/private-renting-tenancy-agreements

Rent a Room (gov uk) – https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Rent A Room tenancy agreement template (British Landlords Association) –  https://thebla.co.uk/room-let-agreement-template/and: https://thebla.co.uk/wp-content/uploads/2020/10/Residential-Licence-Agreement.doc

Renting with other people (Citizens Advice) – https://www.citizensadvice.org.uk/housing/renting-a-home/renting-with-other-people/

Tenancy deposit protection(gov uk) – https://www.gov.uk/tenancy-deposit-protection

Using a guarantor (Citizens Advice) – https://www.citizensadvice.org.uk/housing/renting-a-home/using-a-guarantor/