Buy-to-Let increases burden on welfare

It is expected that George Osborne will be cutting Housing Benefit in his budget on wednesday, it has been reported through certain media that he is considering forcing all housing benefit recipients to contribute towards their own rent. It has also been reported that he is pushing for the benefit cap to be lowered from £26,000 to £20,000 outside London and the South East.

This is all part of the chancellors drive to cut the welfare bill.

This may become a pointless excercise for as he cuts housing benefit to claimants on the one hand the numbers of claimants are increasing with the availability of buy-to-let properties increasing, the buy-to let sector at present is booming and there appears no let up in demand.

According to the GMB, the number of   buy-to-let homes increased by  52,300  in the private rented sector in the first three months of 2015 which the union says could add another 20,000 new housing benefit claimants over the quarter and 80,000 over the year, they went on to say the annual additional cost to the taxpayer in housing benefit will be “at least £440 million”.

Kamaljeet Jandu, GMB national officer for equality, said: “This growth in buy-to-let lending will give rise to even more claims for housing benefit to pay the rents quite apart from pricing would be home owners out of the market, taxpayers already pay rent to private landlords owning nearly 1.6 million dwellings in England and Wales”.

This situation makes no sense whatsover as this money going to private landlords could be used to finance the building of new houses,   tax payers would see the long term benefit by getting returns on housing stock that would be owned by the governement.

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agents should not all look the same
Estate Agent Talk

How to Become an Estate Agent with No Experience

Breaking into the property industry can seem intimidating – especially if you’ve never worked in it before. But the good news? You don’t need years of experience or fancy qualifications to start a career as an estate agent in the UK. In fact, many successful estate agents started with no background in property at all.…
Read More
buying at auction uk
Estate Agent Talk

9 Advantages of Selling Your House by Auction

Selling your house by auction might seem like a daunting prospect, but it comes with numerous advantages that can make it a highly attractive option. While the traditional method of selling through an estate agent has its place, auctions are increasingly becoming a popular choice for homeowners looking for a swift and reliable sale. Here…
Read More
Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More