Landlords 'cannot reduce rent'

Posted: 03 Feb 2011 13:43:21 GMT

A spokesman for landlords has reasoned they are not in a position to reduce rental costs.

It is looking increasingly likely to some that landlords will have to pull out of the benefit sector.

National Landlords Association spokesman Vincenzo Rampulla pointed out it might not make financial sense for professionals to carry on letting to Local Housing Allowance tenants.

He explained how circumstances are being influenced by recent benefit cuts imposed by the government.

"The cuts for large properties are quite significant on a per week basis and, if tenants can't make that amount of money up themselves … the numbers just aren't going to stand up," Mr Rampulla said.

Even if landlords are happy with leaseholders and would like to keep them, he added, the margins are currently so tight that lowering costs is not an option.

Despite the fact welfare claimants are directly affected by smaller benefit funds, the British Property Federation revealed 88.3 per cent of landlords would not reduce their rents for claimants.
 

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