THE number of private landlords in East Lothian has fallen, putting new pressures on a growing homelessness crisis in the county.

Fears that tenants will not pay their rent and arrears caused by the new Universal Credit (UC) benefit system have led to some private landlords pulling out of the market and many becoming unwilling to rent to people on benefits.

A report on the risks facing East Lothian Council over the coming year placed its ability to deal with homelessness at the top of the danger list.

It revealed there had been a fall in the supply of private lets for people in most need due to the impact of welfare reforms.

Jim Lamond, chief finance officer with the council, said: “One of the changes has been giving tenants much greater rights by giving benefits to them. Landlords are uncomfortable with that.”

Speaking at a meeting of the council’s audit and governance committee on Tuesday, Councillor Stuart Currie, SNP Group leader, said: “In parts of England it has become almost impossible for people on UC to get a private let. It is all holiday lets. That is a concern for East Lothian.

“If we get to a point where private landlords do not want to accept anyone on UC or benefits or are not looking to expand their portfolios it is a major issue in East Lothian because rent prices will go up as demand outstrips the supply.”

Douglas Proudfoot, council head of development, said it was vital the local authority took the right approach.

He said: “Pressures are increasing and we have to do something about it. It is something we have to get right and address for our citizens and the most vulnerable in our society.”

It is estimated there are about 400 homeless people in the county at any given time, with the majority placed in a range of temporary furnished units, others in supported hostels and bed and breakfasts. The report said increased evictions due to rent arrears had added to homeless numbers in the county, as well as changes to legislation which took away the council’s right to prioritise needs.

Councillor Brian Small, Conservative Group leader, said: “We need to monitor this. It is something that cannot be magicked away overnight, I wish it could. It is something we need to be kept fully aware of as it goes on.”