18 Feb

Landlords welcome housing benefit U-turn

Landlords welcome housing benefit U-turn

Buy-to-let investors have welcomed the government's decision to remove an additional cut in housing benefit.

The Welfare Reform bill, revealed by work and pensions minister Iain Duncan Smith yesterday, will "radically" reshape the UK welfare system.

Universal credits will replace the current system of benefits and credits and new powers will help tackle fraud and error problems.

Originally, a ten per cent cut in housing benefit for jobseeker's allowance claimants was part of welfare reforms - however the government has decided to remove this measure.

According to the National Landlords Association (NLA), the decision will provide more security for vulnerable tenants.

David Salisbury, chairman of the NLA, said: "The National Landlords Association welcomes the government's decision.

"However ... landlords will be watching this legislation closely to see what protection the government can provide against the other ... changes to housing benefit."
The proposals could threaten the supply of affordable houses to rent in the UK, he added.

According to the NLA, 76 per cent of landlords with housing benefit tenants are planning to reduce the number of Local Housing Allowance properties they provide in 2011.ADNFCR-1222-ID-800414533-ADNFCR

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