Cuts in Local Housing Allowances have resulted in many landlords cutting the amount of properties available to LHA tenants.
Market research company BDRC Continental put together a panel of landlords, which 15% will stop offering tenancies to LHA applicants. Also 1 in 4 have already started to look at cutting the number of LHA tenants in their property portfolios.
A further 32% will take action when capping LHA affects them.
The landlords are responding to changes to the way LHA scheme payments are now being calculated.
Several key changes include capping the maximum Local Housing Allowance rates as well as reducing the maximum property size allowance from five bedrooms to four.
Half of the landlords surveyed say they will be less likely to accommodate LHA claimants as tenants in the future.
Mark Long, director at BDRC Continental, said: “The predicted demand for privately rented accommodation has risen since the first quarter of 2011, with LHA claimants accounting for 35% of tenants in the sector.
Long adds “However, the proportion of LHA claimants has already dropped by 4% since the first quarter of 2011 and a significant number of private landlords are saying they will respond to the capping of the LHA scheme payments by withdrawing from that sector of the private rental market.
All new LHA applicants will be affected by the new capping procedures and as of January existing LHA tenants will be affected.
For more information on LHA in Southampton and the private rental sector then call Martin and Co Southampton West on 02380 988881.