Dundee landlords are being urged to be “realistic” and consider lowering their rents in the face of changes to the housing benefit system.
From January, single people with no dependants will lose their entitlement to rent for a one-bedroom flat and will instead receive the lower rate paid for a room in shared accommodation.
According to new figures from the Scottish Government’s communities analytical service, that will lead to 240 people in the city each losing £18 per week towards their rent and the result, says city council housing convener Jimmy Black, could be a rise in homelessness.
“This is a big hit for private landlords to take but I think they should consider carefully whether it makes sense to lose good tenants in the current market where there is a lot of private rented property available,” he said.
“I would appeal to landlords to be realistic and to consider whether it might make business sense to keep their tenants even if they are paying a lower rent.”
Some parts of Scotland simply do not have enough single-room accommodation to meet the anticipated demand, but that is not a problem in Dundee, he agreed.
“There is quite a lot of supply in Dundee and one of the reasons why is because a large number of purpose-built students residences have opened in the city.
“That has released a supply of what perhaps might be called traditional private rented sector accommodation.
“I think that these changes will undoubtedly mean a number of people will lose their accommodation and unquestionably many will end up at the Lily Walker Centre (the reception centre for homeless people in Dundee) asking for help.
“That will put increased strain on the waiting list, which is already extensive.”
Shelter Scotland said a recent survey showed 61% of 18 to 34-year-olds believed it would be harder for them to find suitable accommodation in four years’ time.
The charity’s director Graeme Brown said, “If Scotland is to retain and attract the young people that are its future, then a much more balanced housing system is needed.”
The Scottish Federation of Housing Associations has also slammed further changes to the system planned for April 2013 which, it says, will see one in five tenants suffer a drop in income.