Bedroom tax will help private landlords
The coalition government has released plans which will directly affect the private rental sector. In a move which David Cameron calls an ‘under-occupation penalty’ - or the bedroom tax to the media – they will impose a penalty upon people receiving benefits and living in social housing, if they have a spare bedroom.
David Cameron believes it’ll save £500m a year so experts think that it will also have another effect – namely increasing the demand for private rented property and the need for landlord insurance. People will want to move to smaller houses – or flats – to avoid losing benefits and as there is very little social housing stock the private sector will expect to take up the slack.
The private sector is also much more likely to have smaller properties with less bedrooms – many councils run detached houses rather than flats.
The downside to this revolution in housing may mean that more tenants may struggle to pay their rent to private landlords.
About the authorEddie Hooker has been involved in the insurance industry since 1985. He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996. Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection.
Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association.
By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support. This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.
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