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New Landlord service calculates Housing Benefit losses

Housing leaders have already expressed concerns in a recent CIH survey that the reforms threaten hardship for individuals, increased rent arrears and a potential knock-on effect on new housing supply.

CIH analysis has revealed that the impact of one change alone, for example reducing housing benefit by 10 per cent for those on Job Seekers’ Allowance for over 12 months, would see claimants living in social homes lose on average £6.70 per week and those living in private sector housing lose on average £11.20 per week.  Many low income households will be hit hard by more than one measure at once.

The new housing benefit impact calculator allows landlords to accurately estimate the amount of income which could be at risk on the basis of their rental income, geographical area and type of housing stock.  Additional support from CIH in the form of an organisational impact report and an on-site review will help housing providers prepare for and mitigate the impact of the proposed changes on their tenants and on their business.

Steve Partridge, Director of Financial Services at CIH, said: “Landlords need to be prepared for the proposed changes to housing benefit which will hit their tenants hard as well as posing a significant risk to their business.  We are offering a comprehensive service to help them understand the risks and ultimately mitigate the worst effects on their organisations and the communities they serve.”

One housing organisation has already trialled the service.  Craig Wood, Debt Manager at Wakefield and District Housing, said: "The work WDH have done with CIH has meant that we now have a much clearer understanding of what the proposed changes will actually mean to our business and the real impact they could have on our customers. We are already using this information to consider alternative strategies that will reduce the risk of any negative financial impact to our organisation.”

More information on the Housing benefit impact calculator and related services can be found at www.cih.org/housingbenefit

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0 thoughts on “New Landlord service calculates Housing Benefit losses

  1. Jim Parker says:

    It’s absolutely crazy that the government think that tenants will be able to top up their rent. The knock on effect will be that Landlords, some who are already trying to make ends meet as the mortgage is almost equal to the rent, will see themselves increasingly having to dip into their own pocket to subsidise the shortfall. Unfortunately some will not be able to do this and fall into rent arrears facing repossession (The tenant will suffer as well). Others will begin to avoid the DSS market becasue unfortunately they can no longer afford to rent to this type of client. The Government has also gone back on their word about re-instating tenants choice to opt for direct payment to Landlords. It’s only going to get worse before they realise it has to geet better.