The Government have been warned by a specialist lettings agency that the impending cuts in Local Housing Allowance are going to cause havoc in the rental market, with many tenants suffering unnecessarily.
Steve Perrons, the managing director of a lettings agency that specialises in providing people on benefits with good housing, believes the Government are making a big mistake in reducing the level of allowance for people who are often desperate to find dependable accommodation. He warns that good landlords who run their businesses in a professional manner and have the basics, such as landlord insurance on all of their properties, will not take kindly to suggestions they reduce their rents because the Government want to cut allowances.
He 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 accommodation.”
Perrons was addressing members of the British Property Federation at their annual conference and warned the Government that a bad situation may well get worse for many dependant residents if they do not reconsider their decision. A recent poll suggested that 4 in 5 landlords would not be dropping rents to facilitate the Government plans. Local Councils across the UK are reported to have started making contingency plans for a situation where people are becoming homeless because their benefits will not cover their rent.