Over Half Of UK Landlords Can’t Afford To Rent To Benefit Tenants
Private Rental Sector Landlords Still Avoiding Tenants Claiming Benefits
The National Landlords Association (NLA) have disclosed that more than half of its landlord members are unable to rent their properties to tenants claiming housing benefit because they can’t afford to allow their properties to be rented at reduced rates, due to the rate caps imposed on the Local Housing Allowance (LHA).
The NLA found that 53% of its landlord members regard the changes to LHA as particularly untenable.
The National Landlords Association believes that the cuts made to the UK welfare system have made renting to tenants claiming housing benefit unaffordable.
Meanwhile, 46.9% of landlords with Rent Guarantee insurance for their rental properties already know that tenant’s under the age of 35 and claiming LHA, are in a far worse position now than they were, because of the Government’s Welfare Reforms.
Shared accommodation or Houses of Multiple Occupation (HMOs) have now become the main focus for the under 35’s. This is due to the fact that tenants on benefits can now only qualify for enough benefit for a single home once they are over the age of 35.
NLA Chairman, David Salusbury said “There is a growing concern that so many landlords are looking to withdraw from the LHA market in the space of just three years, because they cannot afford to let properties to tenants at a reduced rate. 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.”