A new risk for landlords

Published: 09/03/2013

There are fears within the private rented sector that the soon to be implemented bedroom tax could impact on landlords.

From April both council tenants and those renting housing association properties will be subject to bedroom tax. This could see them lose up 25% of their housing benefit if they are considered to have too many bedrooms for their circumstances.

The scheme, before considering the risk for landlords, is not without its critics. Its aim is to reduce the welfare bill and make living space for overcrowded families available. However the scepticism lies in the belief the system will actually end up costing money as tenants are forced out of social housing and into private.

This then creates a risky knock on effect for private landlords as Rob Denman of GW LET explains:

“Bedroom tax is likely to increase the number of tenants in the private rented market. On the surface this would appear a good thing for landlords.

“However when accompanied with the changes to benefits, which will include housing benefit paid directly to the tenant rather than the landlord, you start to appreciate the risks involved.

“Anyone concerned with the latest changes can contact GW LET for legal help and advice.”

Content correct at time of publication

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