Over the last few years there are a growing number of tenants on low incomes have moved into the private housing sector. Actually, almost a third of those receiving housing benefits now rent privately. The benefits payments bill private landlords had doubled over the past 10 years. However, with housing benefits failing to keep up with the rising rents in the private sector and lots of changes being made to the benefit system itself there are many people at risk of homelessness or substandard housing.
Of course, this is not a complete new problem but with the introduction of universal credit the risk and awareness had defiantly increased as landlords are put off by the benefits cap. Many landlords are worried that they will not be paid by the tenants and this is of course a risk. Is this is a possible opportunity to work with the local authorities to ensure our properties are rented for longer period of times through them?
Latest research suggests that 1 in 4 UK households to rent privately by 2022, as house prices are soaring people aren’t getting an increase in their wages and there is a lack of new houses really is limiting a lot of people wanting to buy a property. Although the government has introduced the help to buy scheme the UK still needs to build more houses in order to keep up with the demand and population.
So the questions that you need to ask yourself is how will this be affecting you and your business? How can you take advantage of this situation to help others and make your business more profitable?