Landlords call for government rethink on housing benefit cuts

Published on

Government cuts to local housing allowance (LHA) will leave many landlords with reduced rental income and could increase levels of homelessness, according to the National Landlords Association (NLA).

An NLA survey of LHA landlords has found that 90.3% of respondents would be less likely to take on a new LHA tenant if cuts are made and 49.6% of respondents said they could not reduce rent to retain an LHA tenant.

Over one million tenants receive housing benefits and the Department for Work and Pensions estimates that the impact of the proposed cuts will be an average reduction of £12 per week.

65.7% of respondents said they do not fully understand what LHA reforms will have on their letting business and 45.5% of respondents said they could cope with cuts to LHA if payments were made direct to landlords.

The government is proposing to cut the maximum LHA available from the 50th percentile to the lower 30th percentile of market rents.

A cap would also be introduced, based on the number of bedrooms in a rental property and future LHA increases would be linked to the Consumer Price Index.

David Salusbury, chairman of the NLA, said: “While we understand cuts need to be made to bring the burgeoning LHA budget under control

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

TPFG buys 25% stake in property and mortgage AI business Enteka

The Property Franchise Group (TPFG) has taken a 25% stake in Enteka AI as...

Property professionals back homebuying reforms, CSS poll finds

More than three-quarters of property professionals believe proposed changes to the homebuying and selling...

Accord cuts buy-to-let rates by up to 0.43%

Accord Mortgages is reducing selected buy-to-let rates by up to 0.43 percentage points, with...

Mortgage Brain embeds LMS conveyancing service into CRM Brain

Mortgage Brain has integrated the LMS Select conveyancing platform directly into CRM Brain, allowing...

House prices stall as mortgage costs and Budget uncertainty weigh on market

UK house prices were unchanged in September as higher mortgage rates and wider economic...

Latest publication

Other news

TPFG buys 25% stake in property and mortgage AI business Enteka

The Property Franchise Group (TPFG) has taken a 25% stake in Enteka AI as...

Property professionals back homebuying reforms, CSS poll finds

More than three-quarters of property professionals believe proposed changes to the homebuying and selling...

Accord cuts buy-to-let rates by up to 0.43%

Accord Mortgages is reducing selected buy-to-let rates by up to 0.43 percentage points, with...