Single Tenants Property News

TO BE OR NOT TO BE - A SINGLE TENANT

It is pretty common knowledge that the Government recently announced they were going to be reducing Housing Benefit/LHA (local housing allowance) considerably and you wouldn't be alone in thinking that if you are a landlord who has tenants on LHA then this would effect more people in London than here in sunny Dorset!! However, what isn't being widely spoken about is the single person.

The Single Room Rate (SRR) is being risen from the age of 25 to 35. Currently if you are under the age of 25 you are only entitled to a room rate (a bedsit or room in a shared house). However in April 2011 this will change for all new claimants. If you are under the age of 35 you will only qualify for SSR.

For those who are currently in a one bed flat between 25 and 35 the government have extended the change to January 2012. This could spell trouble for Landlords who fall into this category. Their tenants in effect will have no choice other than to move to a bedsit or shared house or risk falling behind in their rent.

Single tenants under the age of 35 will not like moving from a self contained one bedroom environment to a smaller property like a bedsit or into a shared environment in a house/flat.

The bad news for Landlords will be those whose tenants fall into rent arrears, they will have no choice other than to evict them because the current rules state the council will not re-house anyone unless they are evicted. To move out prior would be deemed as making themselves 'voluntarily homeless', oh and YOU the Landlord has to bear the brunt of the court costs.

So, if you are a landlord who currently rents one bedroom properties to single people under the age of 35 either be prepared to not renew their tenancy next time round and try to rent to a couple or insist on a guarantor (at least you will have some re-course if arrears develops)

The good news is of course for Landlords who have HMO's (houses of multiple occupancy) as these will be in popular demand. The new trend going into 2011 will be Landlords either expanding their portfolio's with HMO's or brand new landlords investing in large houses to turn into HMO's.

If you are looking to become a Landlord or expanding your portfolio then talk to Move On Rentals for free, impartial advice on current realistic appraisals and up to date advice. Alternatively if you are looking to sell a rented property with or without a tenant in situ then please ring Move On 01202 711169.