New scheme launched for London landlords

A new scheme has been launched in London that affords people without a home the chance to rent a private flat, it has been reported.

According to the Guardian, Broadway, the non-profit organisation that runs the scheme, provides landlords with a chance for guaranteed income from their flats, the payment of low running costs, and almost no time when their properties are empty of tenants, the Guardian reports.

The newspaper explains that London-based landlords who register with Broadway or a participating local authority, such as Hammersmith and Fulham, will receive a steady income from tenants selected by the organisation to pay rent from their Local Housing Allowance.

Privately owned studio and one-bedroom apartments are eligible, and landlords can agree on contracts of up to five years with the tenants.

"Broadway and organisations like us do this all the time when we manage properties for housing associations. Why not do the same for private landlords too?" chief executive Howard Sinclair asked the newspaper.

Meanwhile, specialist by-to-let mortgage provider Paragon has reminded landlords that they may be entitled to tax allowances. It explained that landlords could offset many of their costs, such as mortgage interest, water rates and council tax, by letting property against their income.

News posted on 27th May, 2008