Landlords turn to tenants on benefits
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An increasing number of landlords are turning to housing benefit claimants to fill vacant properties.
Business Development Research Consultants polled 507 buy-to-let investors and found the percentage accepting tenants on housing benefit has shot up 11% in the space of three months, from 9% in Q4 2008 to 20% in Q1 2009.
BDRC attributes this to the dearth and expense of buy-to-let mortgages, as well as the fact that private tenants are struggling to pay their rent.
And some 30% of landlords say that they would be more open to claimants if the government stopped paying housing benefit direct to tenants.
Mark Long, director at BDRC, says: “Many landlords are taking this chance to rent to claimants for the first time, despite the bad experiences of others.”
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