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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