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Changes in homelessness rules affect landlords
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
New processes affecting how the homeless must appeal for help finding property will have consequences for private landlords. From the 9th November this year, local authorities will have to adhere to fresh rules when housing these types of tenants.
Private sector strain
The new statutory requirements are likely to put more of a strain on the privately rented sector to house tenants. This will be felt particularly in places where the Local Housing Allowance is lower than local market prices.
Changes in homelessness rules affect landlords
Homeless people searching for housing had previously been put onto social housing waiting lists. Under the new requirements, local councils are likely to give tenants private accommodation and are being encouraged to do so as opposed to putting people through the traditional homeless assessment. This is likely to be the case even in instances where tenants have been fully assessed.
Expensive
In more wealthy areas of the country, local authorities could be forced into negotiation to secure the best outcome for themselves and private landlords. One option is to assess whether landlords can drop their rent to match Local Housing Allowance rates to accept social tenants. Alternatively, they could be forced into financial difficulty if they up LHA to private rent levels.
Bankruptcy?
An expert in landlord and tenant law believes that the changes could, in extreme circumstances, leave local housing departments facing bankruptcy. Ben Reeve-Lewis said that private landlords and local authorities should work together to avoid this happening.
