Monday, April 23, 2012
Benefit Cuts Making Letting Unaffordable for Landlords
A survey* by the National Landlords Associaion (NLA) has found
that "more than half of landlords can no longer afford to rent
to Housing Benefit tenants because of cuts to the
allowance". Nearly half of landlords (46.9%) believe
tenants aged 35 and under will be hit hardest by the changes, and
almost 69% of landlords say they can't see themselves letting to
LHA tenants in 2015, according to the NLA.
The LHA cuts have seen maximum rent benefit payments reduced to
the 30th percentile of local average market rents, rather than the
previous 50th percentile.
The age at which a tenant on benefits qualifies for any more
than a single room in a shared house has also been raised from 25
to 35, forcing many more people into shared accommodation.
David Salusbury, Chairman, National Landlords Association,
"It's concerning that so many landlords appear to be
planning to withdraw from the LHA market within just three years,
as they can no longer afford to let their properties to tenants at
the reduced benefit rate.
"In view of the pressures on housing, the private rented
sector will inevitably play an increasingly important role in
providing housing to LHA tenants, particularly those aged under 35,
who aren't able to access other housing.
"It is vital that local authorities work with landlords to
provide the support services needed to help this demographic, as
many are forced to move into shared accommodation."
*956 landlords were surveyed by the NLA in February 2012