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. More information can be found regarding the amount for specific locations by looking at the LHA calculator at the DirectGov website.
This is a major change and is highly likely to increase demand for individual room lets in Cambridge. The general demand for individual en-suite rooms with shared kitchens is increasing as renters try to make their income go further.
Property investors considering investing in this type of property (multi room let) are strongly urged to take advice before buying. Location, room sizes and facilities are critical. There are various additional mandatory regulations that will need to be complied with. Yields from this type of investment are significantly higher than standard lets, in excess of 10% after expenses.
Investors considering adding this type of property to a buy to let portfolio are invited to call or 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 Cambridge, will share information relating to the Cambridge 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/Cambridge