For many people in the United Kingdom getting affordable housing is one main concern. It is therefore no surprise that government policies to help the market are in high demand. As of this date, the British government already established various rules and regulations in regards to affordable housing.
Financial assistance for people with low incomes are one main concern. For that reason the British government had set in place their housing benefit program. What is there to know about housing benefits? People cannot use the housing benefits to make mortgage payments or in order to purchase a new home. Likewise, they cannot be used to pay for everyday living expenses. The government established the program for the sole purpose so people can get financial assistance with their monthly rents in case they struggle financially.
In order to obtain housing benefits in the UK, the renter’s income will be looked at as well as their savings. This is done to determine whether they can make heir rent payments or not and whether they might be eligible for the benefits. If they are eligible, they are able to apply for a furnished or unfurnished flat and in some cases even a rental house.
On the other hand, the British government put some restrictions on housing benefits. One of those restrictions is thar only one person in the household can apply for housing benefits. The other is that the rent cannot exceed a certain amount.
In order to make sure that housing benefits in the UK are only granted to those who deserve them, every one that applies will be screened carefully. This will make sure that benefits will only go to those who need them.
There are more options in order to control the costs of rent. For instance in the United States, many wealthy are investing in rental property. This is one reason why rental costs in New York City are very high. In order to not let rental costs get out of hand, protection must be set in place. This will set a cap on the monthly cost of rent.
Usually, this cap is a numerical one. For instance, it will mean that a certain type of rental unit can only be a let for a certain amount. Likewise, those caps include rules in regards to rental cost increases. More often than not, a certain percentage will be given that cannot be exceeded. But doing that, landlords cannot raise rents abut that specific percentage.
On the other hand rent control must also consider that landlords are dependent on their rent as their income. Landlords, in the same way as tenants have mortgages to pay and will have expenses such as utilities along with other expenses. For that reason, rent can and should be raised, however the increase must be reasonable. That way, both parties, landlords and tenants can benefit from those regulations.
There’s another benefit about rent control laws and that is protection from eviction. The rules set in place can keep landlords from evicting those who want to re-sign a lease. In the same way, those laws will be able to take care of important issues such as apartment repairs and routine maintenance. In such cases where landlords would refuse to pay the cost for the repair, the associated costs for the repairs can be deducted from the tenants monthly rent payments.
Clearly, there are benefits in regards to more control on the housing market.