UP TO 200 people face being made homeless after their landlord announced plans to sell all his houses - because it is no longer profitable to rent out property in the Ribble Valley.
The move by the Liberty Property Group, based in Great Harwood, will leave 50 families, all placed in the houses by Ribble Valley Council and all on housing benefit, with nowhere to live.
Managing director Mark Greenwood today said he had an excellent relationship with Ribble Valley Council, but spiralling property prices meant that it was no longer sensible for him to keep operating in the borough
Housing benefit, set by the government, currently averages £325 a month in rent for Mr Greenwood, but the buy-to-let finance deal he has with money lenders is linked to constantly-changing house prices, meaning he is paying out at least £372 a month.
Mr Greenwood said: "Property prices have gone up and up in the Ribble Valley over the past few years, but housing benefit has only nudged up very slowly.
"We house a lot of housing benefit cases for the council and it will cause real problems for them, but what can we do?
"The council doesn't have the power to raise housing benefit and at the moment it doesn't even cover what we pay out, let alone cover the cost of repairs and improvements.
"We are a business at the end of the day and we're preparing to sell these houses. It's the government's fault."
The bombshell follows revelations by the Lancashire Evening Telegraph last month that 600 people applied to live in the 26 houses Ribble Valley Council has available.
Rising prices in the Valley, triggered by a growth in the holiday homes market and people prepared to commute from the area, has left many families struggling to afford homes, particularly first time buyers.
Mr Greenwood added: "The problem is made worse by the fact houses in other parts of East Lancashire, where we also have property, are so cheap.
"We can buy one for £30,000, spend £10,000 doing it up and quickly make the money back.
"It is a shame but what can we do?"
A spokesman for Ribble Valley Council said: "We do not set housing benefit and cannot add money to it.
"We appreciate Mr Greenwood's concern but will work with other housing associations."
Tenants would have varying periods of notice to quit, depending on their tenancy agreements
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