Lower Risk for Lower Rental Returns

For the landlord, this option presents a low risk solution to receiving rent, but would come at the opportunity cost of lower returns on rent. It is uncertain whether it would be favourable to tenants on benefits, however. Landlords could either welcome a steady stream of rental income for a lower return, or insist on achieving higher rents, which could put these tenants in a situation where finding suitable accommodation is even harder – contrary to the objectives of reducing homelessness and long waiting lists for housing. The success of this policy rests upon how the broader market perceives this opportunity costs.