Landlords to be hit by cuts to housing allowance
16th Sep 2010
UK estate agents could feel the impact of proposed cuts to local housing allowance (LHA), which the National Landlords Association (NLA) has said will hit landlords' incomes.
Many people who own houses to rent could be left with reduced rental income, according to the organisation, which claimed that the cuts could add to homelessness.
The Department for Work and Pensions estimates that the proposed cuts will leave over one million tenants who are on housing benefits £12 out of pocket per week on average.
According to a poll of LHA landlords conducted by the association, as many as nine in ten private rental property owners could shy away from taking on a tenant receiving benefits if the cuts kick in.
David Salusbury, chairman of the NLA, said that despite austerity measures being necessary, the extent of the planned cuts "could lead to serious reductions in the supply of affordable accommodation".
"Many landlords are unaware of the implications these cuts will have on their rental income, with many indicating they want more information on the proposed cuts," he said.
The Federation of Master Builders also recently warned that less than half of new homes needed in the UK are being built and the figure could deteriorate thanks to government cuts.
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