Benefits cap will hit landlords hard, warns property expert

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BENEFIT changes may be popular with the public but will mean “unintended havoc and untold damage” for landlords, a city businessman has warned.

The benefits cap is designed to ensure families cannot receive more in welfare than they could by working.

Ajay Jagota, of KIS Lettings, which manages properties for 700 landlords, said: “If your income goes down by £100 a week, which bill goes unpaid first?

“Your children’s food, the heating in winter, or the rent? Realistically, it’s the rent every time. If that does happen, many landlords won’t have pockets deep enough to cope.

“The Government has talked a good game about levelling the playing field between social housing and the private rented sector, but just this month they announced that if social landlords see tenants fall eight weeks behind with their rent, their landlords will start to receive housing benefit direct. Private landlords, who are now the biggest player in rented housing, will not get this luxury.”