How the Benefit Cap will affect private sector landlords and tenants

With the government’s Welfare Reform on the horizon, we take a look at the Benefit Cap and how it’s likely to affect the Private Rented Sector.

Starting this April, and due to be in place nationwide by the autumn, the cap aims to prevent households on benefits earning more than those in work, (and to cut the Housing Benefit bill). But what will the impact be on landlords who rent to tenants on benefits?

The full details of the Benefit Cap and how it will affect tenants and landlords are outlined in our Info & Advice section.
Not all claimants will be affected, and some will only suffer a small shortfall, which they’re expected to cover by rearranging their finances, and budgeting well. They could avoid it altogether by working a minimum number of hours. How likely these outcomes are to happen in reality is another matter.

We expect many landlords faced with a shortfall in rent will simply reduce their rents accordingly to keep good and long-term tenants, whilst less impeccably behaved tenants or those in short term accommodation will probably get moved on. We’ve seen reports recently of homeless families being moved into hotels due to a lack of suitable short-term accommodation. This is not likely to do much to cut the welfare bill.

Do you rent rooms or whole properties to tenants on benefits? Is the Benefit Cap going to affect you? Get in touch and tell us your views.