According to the London Assembly the recent benefit caps are being blamed supposedly by the capital's private renting landlords as to why they are starting to refuse to housing benefit tenants.

Their recently published reports also says that landlords are more than likely to finish the tenancy period earlier than the full term.

Since 2010 the number of tenancy agreements prematurely terminated has risen by over 400%, from three hundred per quarter to 1,400.

The Assembly's Housing Committee was told that a high percentage of landlords are worried by the new benefit cap and the onset of Universal Credit resulting in a significant decrease of homes being rented to claimants.

Housing committee chairman Darren Johnson AM said: “We have heard evidence of a range of problems, including more evictions and rising homelessness, and councils are having more difficulty finding affordable accommodation for their residents.”

In London approximately 25% of households receive housing benefits in the region of 843,000 homes and that the private sector has a third of tenants in receipt of benefits.

Mr Johnson also said: “London’s high housing costs and the more recent downward pressure on wages have contributed to a rise in the proportion of London’s households in receipt of housing benefit,

“Housing benefit is not just a safety net for people who lose their job. It also ensures that pensioners, people with disabilities and those in low-paid jobs can afford to live in London.”

 

The report is urging the government to constantly monitor the London housing allowance rates and should take into consideration London's higher housing costs.