Menu
07/02/2011
Ministers Urged To Support Better Landlords
Govt Ministers have been urged to avoid a looming housing benefit crisis after new research revealed that welfare cuts may spark an exodus of better landlords from the housing benefit sector.
Data launched at the British Property Federation's (BPF) Residential Conference this morning showed that almost nine in ten landlords (88.3%) would not reduce their rents to claimants, despite the raft of cuts to the housing benefit received by tenants announced by the government.
This flies in the face of government's key argument in favour of the changes – that landlords would reduce their rents in line with housing benefit cuts – and suggests that the high demand for homes in many areas will simply prompt landlords to instead let their properties to paying tenants.
The survey found that more than 85% (85.6%) of landlords would not reduce rents to retain existing housing benefit tenants and that almost half (43.4%) planned to reduce the number of properties let to claimants against just 8.3% who planned an increase.
The BPF said that one measure that could keep landlords in the housing benefit market is a return to direct payment, where a tenant could request their housing benefit is paid directly to the landlord.
Since the removal of direct payment in 2008 tenants have failed to pass on millions of pounds in rent, prompting more and more landlords to consider leaving the sector, and contributing to 11.7% (£276m) of all UK rent going unpaid in December. The BPF argues that if social landlords faced the same income shortfall they would face significant difficulties.
The figures underline fears articulated by politicians including London mayor Boris Johnson that the cuts would force many households claiming housing benefit to move from their homes – and possibly their jobs – into small pockets of poor-quality housing.
Landlord groups and homeless charities have asked government to reconsider the damaging cuts, and in particular, to stop housing benefit money that should be spent on rent from leaking out of the system. The BPF supports reform of the housing benefit system, but believes current proposals will increase tenant indebtedness – and the resultant burden on landlords and taxpayers.
Ian Fletcher, Director of Policy for the BPF, said: "Most landlords want to ensure that tenants on benefits remain housed, but with housing benefit rates being cut and little restoration of rents being paid direct to landlords, our figures bear out that many respectable landlords look set to exit the benefit market. Such an exodus would be a tragedy, with more and more claimants forced into a few concentrated areas of sub-standard accommodation. Government should be seeking to work with the private rented sector to stop this happening.
"Paying your way in the world is one of the values that goes to the heart of this coalition Government, yet when it comes to landlords the Government seems prepared to let people on housing benefit get away with living in accommodation rent-free and landlords suffering huge debts. Landlords and taxpayers deserve better than hundreds of millions of lost money each year, which should be being paid out on housing."
(CD)
Data launched at the British Property Federation's (BPF) Residential Conference this morning showed that almost nine in ten landlords (88.3%) would not reduce their rents to claimants, despite the raft of cuts to the housing benefit received by tenants announced by the government.
This flies in the face of government's key argument in favour of the changes – that landlords would reduce their rents in line with housing benefit cuts – and suggests that the high demand for homes in many areas will simply prompt landlords to instead let their properties to paying tenants.
The survey found that more than 85% (85.6%) of landlords would not reduce rents to retain existing housing benefit tenants and that almost half (43.4%) planned to reduce the number of properties let to claimants against just 8.3% who planned an increase.
The BPF said that one measure that could keep landlords in the housing benefit market is a return to direct payment, where a tenant could request their housing benefit is paid directly to the landlord.
Since the removal of direct payment in 2008 tenants have failed to pass on millions of pounds in rent, prompting more and more landlords to consider leaving the sector, and contributing to 11.7% (£276m) of all UK rent going unpaid in December. The BPF argues that if social landlords faced the same income shortfall they would face significant difficulties.
The figures underline fears articulated by politicians including London mayor Boris Johnson that the cuts would force many households claiming housing benefit to move from their homes – and possibly their jobs – into small pockets of poor-quality housing.
Landlord groups and homeless charities have asked government to reconsider the damaging cuts, and in particular, to stop housing benefit money that should be spent on rent from leaking out of the system. The BPF supports reform of the housing benefit system, but believes current proposals will increase tenant indebtedness – and the resultant burden on landlords and taxpayers.
Ian Fletcher, Director of Policy for the BPF, said: "Most landlords want to ensure that tenants on benefits remain housed, but with housing benefit rates being cut and little restoration of rents being paid direct to landlords, our figures bear out that many respectable landlords look set to exit the benefit market. Such an exodus would be a tragedy, with more and more claimants forced into a few concentrated areas of sub-standard accommodation. Government should be seeking to work with the private rented sector to stop this happening.
"Paying your way in the world is one of the values that goes to the heart of this coalition Government, yet when it comes to landlords the Government seems prepared to let people on housing benefit get away with living in accommodation rent-free and landlords suffering huge debts. Landlords and taxpayers deserve better than hundreds of millions of lost money each year, which should be being paid out on housing."
(CD)
Related UK National News Stories
Click here for the latest headlines.
19 May 2015
Welsh Govt Commits £108m For Social Housing
The Welsh Government has announced it is to invest £108m in the country's social housing stock. The funding will be used by local authorities and Registered Social Landlords to improve homes and ensure they are safe, secure and met the Welsh Housing Quality Standard (WHQS).
Welsh Govt Commits £108m For Social Housing
The Welsh Government has announced it is to invest £108m in the country's social housing stock. The funding will be used by local authorities and Registered Social Landlords to improve homes and ensure they are safe, secure and met the Welsh Housing Quality Standard (WHQS).
25 April 2012
Boris Johnson Vows To Block 'Social Cleansing'
Following criticism of Newham County Council’s attempt to relocate housing benefit tenants out of its area, London mayor, Boris Johnson has said he will not have "Kosovo-style social cleansing" of the poor in the capital.
Boris Johnson Vows To Block 'Social Cleansing'
Following criticism of Newham County Council’s attempt to relocate housing benefit tenants out of its area, London mayor, Boris Johnson has said he will not have "Kosovo-style social cleansing" of the poor in the capital.
09 September 2009
Millions Of Pounds Wasted On Housing Benefit Reforms, Says NLA
The National Landlords Association (NLA), the UK's largest representative body for private-residential landlords, has claimed that millions of pounds of taxpayers' money is being wasted by a new method of paying housing benefit, the Local Housing Allowance (LHA).
Millions Of Pounds Wasted On Housing Benefit Reforms, Says NLA
The National Landlords Association (NLA), the UK's largest representative body for private-residential landlords, has claimed that millions of pounds of taxpayers' money is being wasted by a new method of paying housing benefit, the Local Housing Allowance (LHA).
04 June 2015
Scottish Govt To Invest £5m In Households
The Scottish Government has announced it is to invest £5m in some of the country's poorest households. The investment, which is being made available from the Government's HEEPS: Cashback – Social Landlords Scheme, provides funding to housing associations and local authority landlords towards energy efficiency measures.
Scottish Govt To Invest £5m In Households
The Scottish Government has announced it is to invest £5m in some of the country's poorest households. The investment, which is being made available from the Government's HEEPS: Cashback – Social Landlords Scheme, provides funding to housing associations and local authority landlords towards energy efficiency measures.
22 October 2012
Escalation In Working Families Relying On Housing Benefit
Since the recession began in 2008 the number of working households relying on housing benefit has doubled, according to a new report.
Escalation In Working Families Relying On Housing Benefit
Since the recession began in 2008 the number of working households relying on housing benefit has doubled, according to a new report.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
