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Social Housing: Private Landlords Picking Up Slack?

With reports recently that Social Housing is becoming less and less accessible to the people who need it and the government showing no signs of investing in new social housing initiatives it is now falling to the Private Landlords to pick up the slack.

Just this week Lord Freud has said the housing benefit bill was "out of control" and that families who had a spare room and in receipt of benefits were to have their LHA slashed by £11-£20. His belief is that no recipient of LHA should be afforded the "luxury" of a spare room when many tax payers were unable to afford this luxury themselves.

Labour peer, Baroness Hollis of Heigham, has called the plan to cut the housing benefit of such tenants "claustrophobic" and advised that any savings to be made by the government in cutting this benefit would be based on people staying put rather than downsizing.

If they were forced to downsize due to cuts where would they go? There is already a shortage of social housing - does this mean more and more families will be pushed into the private rental sector?

Private Landlords now find themselves providing rental accommodation for some of the most vulnerable in society. They may find that the some of their tenants will be receiving Local Housing Allowance (LHA) to assist them in paying their rent; this money is paid directly to the tenants and we have heard of Landlords not getting their rent because of this.

Is there really a solution to this problem? Are you being affected by this as a Landlord or a Tenant? We would love to hear from you and run a short feature in a future blog!

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Posted By Admin on Thursday, October 20, 2011 | Type: Blog