Landlords drop housing benefit tenants as cuts bite

Landlords drop housing benefit tenants as cuts bite

15:24 PM, 23rd April 2012, About 12 years ago 22

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Tenants on housing benefits are struggling to rent buy to let homes as landlords withdraw from the market.

The market is set to deteriorate further over the next three years as huge numbers of landlords say they will stop letting to tenants on benefits.

Demand from first time buyers and movers who cannot buy a home is cutting the number of rented homes available for benefit tenants as landlords switch non-benefit tenants, says the National Landlords Association (NLA).

A NLA survey has revealed more than half of landlords (53%) consider letting to benefit tenants is unaffordable after the government cut local housing allowances as part of a wider benefits review.

Around 47% of landlords believe tenants aged under 35 will be hit hardest by the changes and almost 69% of landlords say they unlikely to rent to tenants on benefits in 2015.

Councils have stopped paying benefits to single tenants under 35, forcing them to seek shared accommodation, while average rents paid have also dropped as well.

NLA chairman David Salusbury said: “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.”

Landlords can find out the likely rent a local council will pay on their property by inputting some details in to an official online calculator.


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Comments

0:57 AM, 1st May 2012, About 12 years ago

im an esa+hb claimant for MH issues, my LL wants me out due to the rate changes. i cannot find anywhere for the shared accomodation rate and i cannot cope living or being with other people. im scared :'(

2:13 AM, 2nd May 2012, About 12 years ago

It is unfortunate for you; but you will have to live where your wages (LHA and ESA) afford you to live.
People not on benefit have to make such decisions all the time.
You are NOT entitled to any special privileges as to where your circumstances afford you to live just because you are on benefit.
No benefit claimant has any divine right to live where they have up til now which has been afforded by the previous level of benefits.
The Govt has rightly reduced the level of benefit as it cannot be right that someone on benefit can live somewhere that a person working on the average wage cannot afford to live.
Your domestic circumstances clearly entitle you to relevant benefits.
Your LL is in business, he is not a housing charity.
He requires a return on his capital and needs to service debts and manage costs of operating the property.
He therefore is entiltled to charge market rents.
If LHA is insufficient to meet the rent payments then tough.
Move somewhere that you can afford with your 'wages'.
Your medical issues are something that should be addressed to your local council and housing charities.
They may well be able to house you in better circumstances than LHA for your situation allows.
I would suggest that if you were able to find a homeowner who wants a lodger and is prepared to  take such a person as you on, that would be better for you than the normal multi-shared properties.
Once you achieve the age of 35 you will be able to have a 1 bed property.
You really need to have a conversation with the Housing Options dept at your local council who may be able to offer solutions for your predicament.
If you are unable to cope living with other people you had better get yourself a tent or maybe a caravan if the council will not not give you self-contained accommodation.
I would also suggest liaising with Mental Health charities who may be able to assist.
The problem with lack of affordable shared accommodation is not being assisted by the increasingly onerous conditions being imposed by councils on LL with shared accommodation.
As a consequence many LL are now withdrawing form this market and converting or selling on their properties.
This comes just at a time when due the changed LHA benefit levels  single room accomodation is in even more demand.

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