Before January 2012, the shared accommodation rate only applied to people under 25. Changes to housing benefit rules will also affect most single people aged 25 to 34 already living in privately rented self-contained accommodation. Reductions in their housing benefit may result in a shortfall between the amount of benefit paid and the rent.
The shared accommodation rate is set by local rent officers – the maximum amount is based on the cost of a single room in a shared house in an area. You can find out how much this is for your area by looking at this LHA calculator
This is a major change and is highly likely to increase demand for individual room lets in Peterborough. The general demand for individual en-suite rooms with shared kitchens is increasing as renters try to make their income go further.
Investors
If you are considering investing in this type of property (multi room let) we strongly urge that you take advice before buying. Location, room sizes and facilities are critical. There are various additional mandatory regulations you will need to be familiar with. Yields from this type of investment are significantly higher than standard lets, in excess of 10% after expenses.
If you are considering adding to your buy to let portfolio why not give us a call/email to arrange a free one to one review meeting with Terry Lucking . In this meeting Terry based on his knowledge as an experienced lettings agent in Peterborough will share information with you relating to the Peterborough Property Market, such as;
- Property Most in Demand
- Most Popular Locations
- New Regulations Affecting the Private Rented Market
- How Multi Room Let Properties can be made to work successfully plus lots more.
Contact Terry Lucking on 07801 865780 or via the office www.belvoir.co.uk/peterborough or terry.lucking@belvoirlettings.com
