An increasing number of landlords are accepting tenancies from people who are claiming benefits, it has been stated.
Manager of buy-to-let mortgage firm Clarity Commercial Chris Jenkins said there are a number of reasons for the emergence of such a trend, such as the difficulty of finding tenants due to the increased supply of rental properties.
Another is that many people who are on benefits are skilled workers who are only unemployed because of the recession, he added, noting: "These types of tenants are usually blue collar, semi-skilled workers who are able to provide good references and pass credit scores but are out of work due to the current economic climate."
A third reason Mr Jenkins identified was that less work is involved in finding people on benefits looking for rental accommodation, as they can be sourced easily via councils.
Research group BDRC revealed today that the proportion of landlords who will rent accommodation to people on benefits more than doubled from nine per cent to 20 per cent between the fourth quarter of 2008 and the first quarter of 2009.
Published on: May 19, 2009