The property industry has welcomed the announcement by the welfare reform minister, Lord Freud, that there is to be a “comprehensive and thorough” independent review into the effects of cutting Housing Benefits, according to the British Property Federation (BPF).

Responding to a motion in Parliament tabled by Lord Best, Lord Freud had stated: “I make a firm commitment to the House that we intend to commission independent, external research to help us evaluate the impact of the reforms”.

The BPF say that the announcement by Lord Freud means that government proposals subject to the review could include the removal of the five bedroom Local Housing Allowance rate, the introduction of an absolute cap on weekly rates, the removal of £15 weekly Housing Benefit excess, the inclusion of an additional bedroom for those with need for overnight care and the setting of Local Housing Allowance rates at the 30th percentile.

Lord Freud went on to state that other issues to be covered in the review would be homelessness, shared room rate and houses in multiple occupation and people with disabilities and working claimants. The interim results of the review are expected in the summer of 2012.

Ian Fletcher, director of policy for the British Property Federation , said: “We welcome this announcement and would urge government to hold off on further planned waves of reform until the interim results of the review are made available.

“By admitting that a review is needed, it would now be a gamble to proceed with further reforms until the findings of the review are clear. By accepting Lord Best’s motion the government is admitting it does not really know the likely impact of cutting housing benefits and should proceed carefully therefore.”