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A A AThe Chartered Institute of Housing (CIH) has suggested that the conflict between welfare and housing policy is causing increasing homelessness and should be subject to national review.
Welfare reform means that private landlords are increasingly reluctant to take on benefit tenants.
Private rented tenancies coming to an end are now the most common reason for homelessness. It has accounted for 27% of new cases of homelessness in the first quarter of 2014.
CIH has suggested that the government invest in affordable homes and exempt those living in temporary accommodation from the benefit cap.
Local authorities have had greater freedom to help homeless households by placing them in privately rented accommodation since the Localism Act 2011. The Government hoped that this would create stronger links between local authorities and private landlords as well as driving up quality and management standards and providing more housing options for homeless households.
Unfortunately welfare reform, and in particular the benefit cap, has cut the amount of benefits that people receive and this has meant that some landlords are reluctant to rent to tenants on benefits.
Chief executive Grainia Long has said: “There is a clear conflict here – the Localism Act was supposed to make it easier for local authorities to help extremely vulnerable people find a home but welfare reform is making it harder.
“We think the Government should carry out an urgent review. Welfare changes including the benefit cap and the ‘bedroom tax’ are aimed at cutting the housing benefit bill – but ultimately the most effective way of achieving that would be to build more”
Let us know what you think. The relationship between landlords and tenants on benefits has been discussed several times on our forums. Read up on some of them listed below.
Tenants on benefits nervous about welfare changes. Should landlords be paid rent direct?: here
Working couple and family face homelessness due to benefits: here
Landlord with 1,000 homes evicts tenants on benefits and say Eastern Europeans are better tenants: here
Beth Middleton for Landlord Referencing
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