Benefit Cuts Making Letting Unaffordable for Landlords

Article Posted -
20 Apr 2012

A survey* by the National Landlords Association (NLA) has found more than half of landlords can no longer afford to rent to housing benefit tenants because of cuts to the allowance.

The survey showed 53% of landlords believe the local housing allowance (LHA) cuts have made it unaffordable to rent to those on benefits.

Nearly half of landlords (46.9%) believe tenants aged under 35 will be hit hardest by the changes and almost 69% of landlords say they can’t see themselves letting to LHA tenants in 2015.

The LHA cuts have seen maximum rent benefit payments reduced to the 30th percentile of local average market rents, rather than the previous 50th percentile.  

The age at which a tenant on benefits qualifies for any more than a single room in a shared house has also been raised from 25 to 35, forcing many more people into shared accommodation.

David Salusbury, Chairman, National Landlords Association, commented: 

“It’s concerning that so many landlords appear to be planning to withdraw from the LHA market within just three years, as they can no longer afford to let their properties to tenants at the reduced benefit rate.

“In view of the pressures on housing, the private-rented sector will inevitably play an increasingly important role in providing housing to LHA tenants, particularly those aged under 35, who aren’t able to access other housing.

“It is vital that local authorities work with landlords to provide the support services needed to help this demographic, as many are forced to move into shared accommodation.”


For further information, please contact:

Dane Svenson, Press Officer

0207 840 8925 

*956 landlords were surveyed by the NLA in February 2012


The National Landlords Association (NLA) is the UK’s leading organisation for private-residential landlords. It has over 20,000 paid-up members, ranging from full-time landlords with large property portfolios to those with just a single letting. NLA membership helps landlords make a success of their lettings business by providing a wide range of information, advice and services. The NLA campaigns for the legitimate interests of landlords by seeking to influence decision-makers at all levels of government and by making landlords’ collective voice heard in the media. It seeks to raise standards in the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities. Based at its head office in Central London, the NLA currently employs over 40 full-time staff and has a network of more than 40 regional representatives and branches throughout the UK.


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