Landlords in Dundee are being advised to be realistic when setting the monthly rent for a tenant and some are being urged to think about reducing the rents as the changes in housing benefit are now just over six months away.
From January, single people who have no dependants will be losing their entitlement to rent for a one bedroom flat. They will instead be switched to the lower rate which is paid for a room in a shared property. According to the latest figures released from the Scottish Government a huge number of people will lose a considerable amount of their income when the changes take effect. Dundee Council believes that property owners with landlord insurance quotes need to speak to their tenants and hopefully come to a compromise.
Council housing officer Jimmy Black said: “This is a big hit for private landlords to take but I think they should consider carefully whether it makes sense to lose good tenants in the current market where there is a lot of private rented property available. I would appeal to landlords to be realistic and to consider whether it might make business sense to keep their tenants even if they are paying a lower rent.”
Other areas of Scotland simply will not have enough single room accommodation to meet the demand and the centre for homeless people in Dundee (Lily Walker Centre) is expecting a big increase in the number of people asking for help because they have lost their accommodation. Shelter Scotland claim that the 18 to 34-year-old age group will find it hard to get suitable accommodation in the coming years unless there is a re-think on the changes. The SFHA (Scottish Federation of Housing Associations) has also slammed the changes which are planned for two years time when two out of ten tenants will suffer a further drop in income.