LHA Benefit Caps are already taking their toll

31 January 2012 Categories: News

The recent LHA benefit caps are already having an effect on claimants according to 24housing Magazine. Apparently many claimants in London are being forced to move from their homes because they simply can’t afford to meet rental payments any more. One tenant in the high class area of Maida Vale has a weekly rental bill of £2000 and with the recent LHA cuts he now receives just £400 towards his costs.

According to an interview given by the London tenant, families in the area are literally vanishing, sometimes overnight. Removal trucks are seen much more frequently than ever before and it may be that the more exclusive parts of London see a huge decline in benefit claimants over the coming months.

Depending on where in the city or the surrounding areas you operate as a landlord this news could spell disaster or success. Ben Reeve-Lewis, a property legislation expert commented “Housing benefit cuts, particularly in London are resulting in an economic cleansing of benefit claimants who are being forced out to areas of cheaper rent, as far away as Margate on the south coast”.

It seems then that lower priced rental properties should be the focus for landlords in the South this year, and in fact one landlord living in Margate is already making plans to buy hotels for conversion into cheap rental properties.