Iain Duncan Smith's attempts to influence private sector rent levels through Local Housing Allowance caps have failed to have an effect since being introduced in April, according to two reports. The Rental Index, published by FindaProperty reports that private sector rents rose 1.9% in the Apr-Jun quarter and have reached a record average level of £876 per calendar month. It also reports increased availability of private sector lets and increased rental yields for landlords - pointing towards a buoyant sector that doesn't need benefit-funded business. Data is based on rental asking prices on property websites and has been used by the DWP to model private sector rent levels. Also, BDRC Continental have found that 'one in four private landlords have already begun to look at reducing the number of LHA tenants in their portfolios, and a higher proportion (32%) will do so when capping affects their lettings. Half of the landlords surveyed claim they will be less likely to accommodate LHA claimants as tenants in the future'. The evidence indicates that the private rented sector doesn't need to reduce rents and doesn't need to house LHA claimants, which will increase pressure on local housing authorities and the social housing sector.
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