Private landlords responsible for more than 500 properties in Birmingham have agreed to take a cut in rent in response to Government cuts in housing benefits to avoid mass evictions.
Landlords have fallen into line with the rent reductions after being convinced that the loss of a good tenant, coupled with the costs of eviction and the loss of income while vacant could be more trouble than its worth.
The city council, which pays the benefit, has been contacting the 1,697 tenants who will see their benefit cut below the rent level and offering to negotiate reduced rates with landlords.
In some cases hard-up families renting a five-bedroom house faced having to top up their weekly rent by £45 without the intervention of negotiators.
So far three lettings agents, five landlords with large property portfolios, and a range of individual private landlords have agreed to reduce the rate meaning that 574 residents are no longer at risk of eviction.
And more landlords and benefit claimants are being contacted as benefit levels are being reduced over the next few weeks. City finance chief Coun Randal Brew (Cons, Northfield) said: “We are delighted that landlords have reacted positively to this and brought their rent into line with the benefit changes.
“No-one wants to see families facing further hardship or eviction. It places stress on tenants who have to move and change schools and so on, and is not helpful to the landlord or the council.”
Housing benefit is now capped at £55 per week for a single room flat, rising to £161 per week for a four bedroom house. A higher rate for five-bedroom houses has been scrapped and a lower rate for under 25s now applies to under 35s.
The intiative has been welcomed by the National Landlords Association. Spokeswoman Mary Latham said: “The city council has taken the lead on this. Those landlords that can afford it, see the benefit of keeping a good tenant who keeps the house in order, doesn’t upset neighbours and pays up on time, even at a lower rent.”
