Landlords of benefits tenants have dropped their rents in return for getting rental payments direct, a minister has claimed.
Lord Freud, the welfare reform minister, said that the scheme – a temporary one – had proved a success.
The government temporarily extended the discretion of local authorities to make direct payments to landlords last April when caps to Local Housing Allowance were introduced, paying a maximum of £400 a week for a four-bed property. Private landlords could only receive direct payment if they lowered their rents.
Speaking at the National Landlords Association annual conference, Lord Freud said the measure has been very successful.
He said: “In London alone, a third of claimants who tried to renegotiate their rent received a rent cut. This arrangement will stay in place for housing benefit claimants, prior to the move to Universal Credit.”
The minister also said: “There has been no mass exodus of people moving out of city centres or widespread homelessness because of our housing reforms.”
Prime Minister David Cameron told MPs last January at Prime Minister’s Questions that housing benefit reform had brought private rent levels down – a claim repeated last month by housing minister Mark Prisk.
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Comments
M K I could not agree more on this one and I wont even consider a prospect on benefits. As I have said in these posts before insurances are vitiated with HB claimants. In one block of flats I deal with the insurer does not want HB tenants as they state that with a claim in any one flat with HB claimant the excess rises from £100 to £400 (but not so with a self supporting working tenant). The excess deposit would then need to be taken from the tenant and it will have to be put in a protected scheme and can you imagine a tenant allowing their money to be used in a claim? As far as I am concerned this applies to all properties so they are without exception politely shown the door.
What a load of cod's-wallop. In North West Surrey and West London area which we cover, I know of no landlords who will reduce their rent. Most wont evn consider taking a housing benefit tenant, let alone dropping the rent. Why should they? Lets face it, its easy to get a quality tenant in full time employment paying a high rent and all the time that happens, no landlord will want to opt for lower income just to satisfy some social need.
I'm not meaning to be negative, but just realistic. If you can get a 10% return on your investment as opposed to a 5% one, which would you prefer?