Expert: Councils need to tread carefully with housing benefit

Posted: 09 Aug 2010 09:38:23 GMT

Councils need to be very careful when it comes to housing benefits, one expert has suggested.

Property specialist Malcolm Harrison said the private rented sector acts as a lifeline for many local authorities.

He noted the segment could be damaged if residents who receive housing benefits are not able to pay their rent.

"That puts the tenant out on the street, but what does the landlord do? It's a very tricky line they have to walk," Mr Harrison added.

He explained changes to housing benefits could differ in each area and it could have more of an impact in a location where rental costs are high.

His comments follow the release of research from Paragon Advance, which revealed a number of local housing occupants are falling behind with their payments through no fault of their own.

And, the organisation observed there is a fear a cap on housing benefit due in 2011 could worsen the situation.
 

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