Landlords who accommodate single tenants aged up to 35 on housing benefit should be aware of a change that kicks in next January reports the RLA.
From then, the tenants will only be able to claim enough for a room in a shared house, and will no longer be able to claim for their own self-contained accommodation.
The change of age limit from 25 to 35 had already been announced, but it had been due to take effect from April 2012.
But welfare reform minister Lord Freud has now announced that the change is being brought forward to January.
The Government says this will mean that some 88,000 people aged 25 to 34 will now have to look for shared accommodation, expected to be almost entirely in the private rented sector.
According to the Residential Landlords Association, this is likely to be a gross under-estimate given that, according to the latest English Housing Survey, there are some 1.16 million tenants in that age group.
The RLA’s policy director, Richard Jones, said: “This move comes at a time when because of a power granted to them by the Government, many councils are restricting the amount of shared accommodation available, particularly in our large cities where most young people want or need to live.”
Over 25 local authorities are so far either considering or have implemented planning powers to prevent single-household properties being changed into small Houses in Multiple Occupation (HMOs).
Jones said: “We find it illogical that whilst the Government increases the number of people who will be forced into shared housing, councils across the country are looking to use new planning powers to restrict its availability, resulting in many young people struggling to find somewhere to live. The Government is simply failing to practise joined-up thinking.
“We therefore call on the Government to suspend the planning powers and remove restrictions on creating the increase in shared accommodation that is going to be required.”
Source: Residential Landlords Association
Note from theEHP
Over the last 12 years I have noticed a significant decline in the number of shared houses ans bedsit type HIMOs (Houses in Multiple Occupation). Many landlords I have spoken to indicate that they plan to leave the sector by selling their properties or converting to self-contained flats. The main reasons for this decision apprears to be problem tenants not passing on rents or the time required to manage HIMOs.
