Sunday, April 3, 2011

Poor landlords

Housing benefit cuts deter landlords from letting

Some landlords are no longer willing to let properties to people on housing benefits as new lower rates take effect. The government says they do not expect many landlords to leave the housing benefit market. But landlords say they could suffer if interest rates and mortgage payments go up as income from rent falls. Colin Bryan, a Sheffield-based landlord, who rents 35 properties to benefit recipients told the BBC that "the sums no longer add up." "If we don't do something now, in 18 months time I am likely to be bankrupt because we can't afford to continue with the cuts that are coming," he said. The changes are expected to create most problems in London. Camden council says it will no longer place any housing benefit recipient in central London.

Posted by drewster @ 04:21 PM (4119 views)
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9 thoughts on “Poor landlords

  • Wernerburger says:

    that’s businesss for you. get invloved with govenrment funded bubbles and you run the risk of failing when they stop pumping.

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  • mark wadsworth says:

    Squeal piggies squeal.

    Subsidies for housing benefit landlords far more than tenants (especially if there is a split market – some private tenants get rent paid at such a generous level that non-claimant private tenants end up paying vastly over the odds).

    It’s like LVT in reverse (which only affects landlords or existing homeowners but not tenants or future generations of homeowners).

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  • The BBC’s own stance on this is pretty obvious – “Leave Our Buy-To-Lets Alone!”

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  • voiceofreason says:

    If the lanlord goes bust, the flats will be nice n cheap to buy for the ex-tennants.

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  • The guiding principle is that if your business depends largely or wholly on government policy, you’re in a risky position. That’s the same whether you’re a BTL landlord begging for higher housing benefit rents, or if you’re a solar panel installer begging for feed-in tariff subsidies. Now, what are the chances that they’ll go after farm subsidies next?

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  • bidin'matime says:

    “If we don’t do something now, in 18 months time I am likely to be bankrupt because we can’t afford to continue with the cuts that are coming,” he said.

    Hmm, I like the sound of that…

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  • Should the taxpayer fund your greedy overleveraged portfolio mate and have you not heard of diversification.

    Just how much did you plan for in retirement. ‘Squeal piggies squeal’ indeed.

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  • About time government started to reduce rents paid to landlords!! Hopefully this will bring rents down overall for non-welfare people as there is less incentive for landlord to rent to council tenants. I personally think there should be a cap of say £400 per month for council tenants so us hard working class people can afford to stay in a better house (rent or buy) than council tenants who get everything on a plate. Got 10 kids? Tough!! Get a job like the rest of us!!

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  • @Drewster: Re farm subsidies, they’re highly unlikely to cut those since the tories and their friends make serious money from those.

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