Families in London would be unable to afford rent if the benefit cap is lowered
- 23 Oct
Landlords have warned that affordable rents would be out of reach for families on benefits if welfare is capped at £23k a year.
If the Conservative's policy is implemented developing landlords in London have said they could be forced to radically scale back development as a result, reports Inside Housing.
David Cameron announced on Monday that the benefit cap - currently £26,000 a year - would be further reduced to £23,000 if the Conservatives win a majority in next year's general election, affecting a further 70,000 people.
Paul Hackett, chief executive of Amicus Horizon, said: "I think there would still be demand for affordable rents from people who are in work, but predominantly it wouldn't be affordable to those on benefits."
Another chief executive of a large developing landlord, who did not want to be named, said: "It would mean we couldn't develop affordable rent homes in London anymore. It's a mad policy."
Brendan Sarsfield, chief executive of Family Mosaic and chair of the G15, said: "There is an incoherence when the government wants us to charge 80% rents and also wants to cut back benefits - and it is left up to us to solve that."
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Exempt Accommodation, Welfare Reform and Vulnerable Tenants Everything was extremely useful. I like to hear about the updated case law and how things are changing. Also like to hear other delegates examples and the responses to their difficulties. Support solutions are excellent. K.B- Jephson Housing Association