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Will The New Benefits Cap Mean That Even More Landlords Leave The Sector?

Landlords are being warned that more and more families will be looking for cheap rental homes now that the new benefits cap is being introduced. Research by the Chartered Institute of Housing (CIH) says 116,000 families will be hit - both social and private renters - losing up to £115 a week, from when the cap was introduced on the 7th of November.

The move, which will affect 300,000 children, will leave many families unable to afford their current homes, potentially forcing them into unsuitable temporary accommodation. The cap will limit the total amount of money a family can claim in benefits to £20,000 a year (outside London) a reduction of £6,000 per family from the current £26,000 limit.

A number of exemptions are in place including those eligible for most disability benefits. However Universal Credit payments - which include a housing benefit element - are among those affected.

Housing associations have already said the changes will make much social housing unaffordable to the people who are supposed to live in it - meaning these people will be looking for homes in the PRS. 

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