The national Landlords Association has conducted a survey of 965 landlords where over half of the respondents say that they can no longer afford to rent to housing benefit tenants due to benefit cuts.
53% of those landlord surveyed said that they believed that the cuts to the Local Housing Allowance (LHA) has made it unaffordable to offer accommodation to those on benefits.
And over two thirds (69%) say that they don’t see themselves renting out to LHA tenants in 2015.
Nearly half (46.9%) of landlords think that tenants aged under 35 will be hit hardest as the age at which a tenant on benefits can get anything more than a single room in a shared house has been increased from 25 to 35.
The Chairman of the National Landlords Association, David Salisbury, 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.”
This echoes our view that we will over the coming years see more house sharing amongst the less well off as the economic situation continues to deteriorate. Unless, as we’ve said before, the government builds more houses and accepts that property prices will fall. And as we’ve said before ….. ‘Fat chance!’