Rent risks could affect landlords
Private sector landlords may stop letting their properties to benefit claimants after new reforms on housing benefits were introduced, it is feared.
Since April 7, the local housing allowance has replaced housing benefit, which used to be paid directly to the landlord.
The new system, part of the Government's welfare reforms, will give tenants in the private housing sector an allowance with which to find their own accommodation and pay rent themselves.
But putting the onus on tenants to pay their rent may impact on the number of landlords in the borough who are willing to take the risk of rent being late or not being paid at all, according to Wigan's Michelle
Stevenson, a landlord and tenant solicitor.
Michelle, an associate at Stephensons Solicitors, said: "The previous system was very straightforward.
"Yet, this new scheme will give tenants more responsibility for their own money and meeting rent payments.
"There is now a very real threat that people who rely on benefits may start to find it harder to find homes in the private rented sector."
Only those tenancies which started after April 7 will be affected by the reforms, with existing housing benefit claimants unaffected.
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Thursday 02 September 2010
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