More than half of private landlords are planning to cut down on letting to tenants on housing benefits.
The finding is in a survey by the National Landlords Association and comes as the Welfare Reform Bill reaches its report stage in the House of Commons.
A key part of the Welfare Reform Bill is that Local Housing Allowance, which is paid direct to tenants on housing benefit, will be reduced from average market rents to the bottom 30%.
The poll questioned landlords about LHA, with 58% saying they would have to cut the number of properties they let to benefit recipients. In total, 90% of these landlords plan to do so in the next 18 months, with one-third stating they would be reducing their LHA properties immediately.
More than 80% of landlords expressed concern about the reduction of LHA rates and the same number of landlords were also worried about future LHA increases being linked to the Consumer Price Index rather than true market rents.
The survey found that 90% of landlords stated that they cannot afford to reduce their rents to absorb changes to LHA. The large majority of landlords said this was because they are faced with mortgage repayments and rising running costs.
David Salusbury, NLA chairman, said: “These findings are concerning as they indicate that cuts to LHA benefits are forcing landlords out of this part of the rental market.
“The private rented sector is playing an increasingly important role in providing accommodation to housing benefit recipients in the UK. The Government is implementing cuts which, this survey tells us, is likely to lead to an increasing number of people struggling to pay their rent.
“The NLA believes there is a risk that the Government’s policies will result in fewer affordable rental properties available to vulnerable families across the UK, especially as the number of people claiming benefits continues to rise.
“Benefit payments must ensure that LHA tenants are not left at risk and that landlords providing this much-needed housing can cover their costs.”
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Comments
If this research from the National Landlords Association is right and over half of UK landlords plan to cut the number of properties they let to social housing tenants, then the welfare of many of our elderly tenants and older people who rent in the UK will be at risk.
Many of our tenants receive housing benefits and they are struggling now to make ends meet because of rising inflation, and the increased costs of living in the UK.
As pensioners they have a fixed monthly income; they are unable to work and earn additional money to supplement this income. They are in a very vulnerable position. I fear these cuts will hit them the hardest.
The government really needs to rethink its policies in housing and look at ways of providing support to landlords with elderly tenants. Failure to address this problem could lead to a major social crisis.
Funny I just read exactley the same article here...
http://www.gibbs-gillespie.co.uk/site/pages/press-releases/?id=10513
This is a non story apart from the detail already being known why would any Landlord let to HB tenants unless for whatever reason (probably either a poorer standard property, or less favoured location, or attempt to maximise income) they had no choice.
Nothing wrong with the tenants themselves I have known some very good ones. But the system is hopeless crowned now by direct payment to the tenants