Landlords 'won't lower rent'

Posted: 02 Feb 2011 14:07:55 GMT

Despite cuts to housing benefits, the majority of landlords will not lower rent, a conference has revealed.

Restoration of direct payment could help to keep landlords in the housing benefit market, it has been said.

At the British Property Federation's (BPF's) recent residential conference it was revealed 88.3 per cent of letting agents do not plan to reduce rent for claimants, despite government cuts to housing benefits.

Ian Fletcher, director of policy at the organisation, claimed although most landlords want to see claimants securely housed in quality accommodation, current circumstances may force them to take on paying tenants instead.

"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," he said.

According to the BPF, millions of pounds have been lost by landlords since direct payment was removed in 2008, after some tenants failed to deliver rental payments.

Earlier this week, Chris Town, vice-chair of the Residential Landlords Association, suggested the government should be more supportive of people entering the buy-to-let industry.
 

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