Tamworth landlords may have to change their buy to let strategy from Autumn 2016. The Government are to bring in more welfare cuts and this may have a knock on effect with landlords renting to families on housing benefits.
The Government are giving a benefit cap of maximum £384pw so Housing Benefit tenants with 3 or more children will find themselves having to pay any shortfall in rent themselves. Two years ago the Government brought in a cap of £500 to families with 4 or more children and a number of larger families found themselves evicted by private landlords as the families either couldn’t understand that they would be responsible for this shortfall in rent or they refused to pay the shortfall.
The big shock now is, the lower £384 cap, which will affect families with 3 or more children.
Put simply, if your tenants have 3 children, their maximum housing benefit paid by the council will be about £92pw, leaving your tenant to pay roughly £35pw out of their own pocket.
Tamworth landlords need to ensure that they have made all relevant tenants aware of their responsibilities with regards to paying any shortfall direct to them.
Landlords are increasingly choosing not to take on housing benefit tenants due to the hassle of dealing with local councils and the dogma it entails.
Click here to read in full……………………https://www.gov.uk/benefit-cap/overview
If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01455 633 753 or 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk