Landlords are becoming increasingly reluctant to let to tenants on housing benefit and are terminating Assured Shorthold Tenancies at an ‘alarming’ rate.
A new report, Assessing the consequences of welfare reform, by the London Assembly housing committee, claims that there has been a big rise in AST terminations since 2010, from 300 to more than 1,400 per quarter.
The committee’s report said these terminations are increasing homelessness across the capital, with landlords concerned about benefit caps and other welfare reforms.
The report calls for Local Housing Allowance rates to be regularly reviewed and to take account of London’s higher housing costs, and for LHA to be paid directly to landlords where the tenants have credit and debt problems.
Comments (4)
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Well isn't that a surprise! I think it is what is called cause and effect. Properly controlled payment direct to the landlord took away temptation from the tenant. At least that way tenants were guaranteed a roof over their heads. Local Authorities treat the PRS very poorly but perhaps they are beginning to realise that they need us more than we need them!