Benefit Changes to Hit Buy To Let Landlords

The changes made by the Government to pay rental benefits directly to the tenant may cause problems for landlords.

It is felt that this decision may make lenders wary of lending on properties to be occupied by tenants on benefits and could tighten criteria on the type of tenant the property will be rented to.

The problems foreseen include that although the majority of tenants will cope will having the added responsibility of paying their rent to the landlord some will, for a variety of reasons, spend the money in other ways, causing problems for landlords.

Many cannot understand why the Government has changed a scheme that seemed to be working well. It was also hoped that because of the part landlords play in housing tenants receiving rental benefits that the would start to pull out of this sector of the market.