As many private landlords will be aware, there is a shortage of suitable council housing for council tenants looking for accommodation. Over the years, the situation has got worse as an increasing number of people lost their owner-occupied properties due to the recession as they were unable to maintain their mortgage repayments.
Another reason that there is a shortage of council accommodation is that many people were given the right to buy their local authority home many years ago and took up the option.
There are a number of councils in the south east of the country and in London that are offering private landlords a significant sum of money to provide homes for those people on council house waiting lists. In fact, some councils in London are offering as much as £4,000 to landlords to ‘persuade” them to help them out.
It is no secret that there are many private landlords who will not entertain taking on tenants that are on benefits and allow them to rent their properties as the perception is that some will not take as much care of the property as a private tenant who is not on benefits. Some landlords may now take a different view and consider renting out their investment properties to such people in view of the sums being offered by some local councils.
Apparently, under this arrangement, the landlord will not be able to also take a deposit from the tenant as they would normally do when renting out a property. This deposit is normally to cover such things as non-payment of rent and to cover any damage to the rented out property, fixtures and fittings or its contents that are owned by the landlord.
It will be interesting to see how many landlords participate in this scheme and also if it encourages more people to buy investment properties to then let out.