The Government has been accused by a letting agent of cutting off its nose to spite its face in its determination to reduce housing benefit to claimants in private rental accommodation.
Steve Perrons, managing director of Perrons Davis, a specialist housing benefit letting agency, said: “The cuts amount to a punishment of respectable private landlords who let to benefit tenants at a time when the Government, which does not have the funds to provide enough social housing, needs their help more than ever.
“The Government is cutting off its nose to spite its face.
“The result of the cuts will be that many landlords keep rents at the same level and simply slap a ‘No DSS’ label on their properties, leaving rogue landlords as the only option for many tenants.
“Consequently, many people on benefits will find themselves either homeless or living in sub-standard, over-crowded accommodation.”
Perrons, who has offices in Hull, Grimsby, Nottingham and Doncaster, also called for the Government to restore benefit payments of Local Housing Allowance direct to landlords.
Since the Government scrapped direct payment in 2008, it is thought that millions of pounds of rent have not been passed on by housing benefit tenants.
Perrons was speaking after this week’s British Property Federation housing conference, where speaker after speaker revealed a looming housing crisis.
Ministers were warned that welfare cuts may spark an exodus of better landlords from the housing benefit sector.
The Government has repeatedly said that it expects private landlords will lower their rents once housing benefit is cut.
But data shown to the conference – the result of polling over 1,000 landlords – revealed that only 88.3% would do so.
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Comments
http://www.voa.gov.uk/lhadirect/documents/lha_percentile_rates_august10.htm#table
Check out the forecast new LHA rates. The reductions are minor to say the least. No landlord is going to suddenly reject DSS tenants because if this. Who else is going to rent these properties anyway?
Just another vested interest press release from taxpayer parasites.
"Are free markets rents in that area really abiove the benefits cap?"
Who knows, although we'll find out from April 1st 2011 what any area's true market rate is.
Rightmove has 389 properties for rent £500 or less in Hull, just move parasites! or get a job of course......
Are free markets rents in that area really abiove the benefits cap?
Every where has to make cut backs at the moment. It is only fair landlords do the same. The housing benfit bill has risen rapidly over the last few years and the country simply can't afford it.
A local Lettings agency that 'specialises' in housing benefit sported a massive 'Vote Labour' banner in the election.
That says it all.
DSS rents are too high - under labour LHA was increasing in a viscous circle. LHA should be cut even more - 30th % only results in 5% reductions in most areas - this is taxpayers money we're talking about.
I don't see what the issue is here; any landlord worth his/her salt would have already factored in such shortfalls in their business model.
Still, it's no surprise that a lettings agency that 'specialises' in housing benefit isn't going to be too chuffed with the LHA reforms...