Landlord 'benefits' from labour legislation

News Category: Management

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A private landlord in west London has benefited from a Labour Party-introduced piece of legislation and others like him could feel the positive effects of the initiative, according to the Residential Lettings Association (RLA).

Citing a Daily Mail article, which highlighted how an unnamed property owner is indirectly receiving his rent from the government due to a housing benefit scheme, the RLA claimed that the landlord is "bucking the trend" of the current housing market.

The property in question is in Notting Hill and demands a rent of £1,755 - the same amount that tenant Francesca Walker receives from the government.

This new legislation, which came into practice earlier in 2008, allows some people who receive the allowance to rent from around half of all available buy-to-let properties in a given neighbourhood.

"In these particularly difficult economic times, landlords may stand to benefit from this housing allowance programme," the RLA states.

Last week, the Council of Mortgage Lenders claimed that landlords might be able to benefit from better mortgage deals if the government had more funding to boost supply.

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