NLA calls for major changes to LHA
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The National Landlords Association, the representative body for private-residential landlords in the UK, has continued its call for the government to make immediate major changes to Local Housing Allowance.
With the Pre-Budget Report fast approaching, the NLA wants less talk and more action on LHA reform. The latest research carried out by the NLA shows that total rent arrears across the UK relating to LHA could be as high as £220m.
Local Housing Allowance was introduced for new tenancies in April 2008 when it replaced the old housing benefit system. Under the new rules, instead of rent being paid directly to private landlords to cover housing costs, it now goes straight to the tenants who are responsible for passing on the rent money to their landlord. In practice, many tenants are failing to make these payments and this is causing major problems.
In the most serious cases, landlords are refusing to let to tenants who are in receipt of Housing Benefit because of rental arrears.
David Salusbury, chairman of the NLA, says: “The government must bring forward their planned review of LHA as soon as possible. If ministers are serious about the importance of the contribution the private-rented sector makes to the housing mix, then tenants’ right to choose to have their housing benefit paid direct to their landlords must be reinstated immediately.
“The reality is that both tenants and landlords are losing out under the current rules. The NLA is hearing about more and more landlords who are refusing to let to LHA tenants. We need more affordable housing in the UK, not less – action is needed and it is needed now.”
The Conservative Party has recently announced they will reinstate direct rent payments to landlords where housing benefit tenants choose, if they form the next government.
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Readers' comments (1)
A true British lover | 21 Feb 2010 3:25 am
True. I agree with NLA. I think the government is being stupid. Look at the way housing benefit works now, they got LHA, which is a good idea, but the payment made to tenant is not being paid to landlords. So what option does that leaves to the landlord, if the rent is not paid, what can a landlord do?
The government lives in a fairyland, they don't realise a lot of unemployed tenant have finance problems and many are also on drugs or have gambling addiction. Government need to wake up. Some of the tenants are claiming housing benefit and not paying the rent, shouldn't that be seen as benefit fraud?
Secondly the register for landlord will not work. Best thing to do is have a ombudsman to work by resolving issues for tenants and landlord. And the deposit protection scheme should be scrapped, the deposit protection scheme is not working and its very unlikely the landlord register will work.
Just open a ombudsman for tenants and landlords to resolve issues, scrap the deposit protection scheme, scrap paying housing benefit paid directly to the tenant, pay the housing benefit direct to the landlord, this will reduce the fraud.
Create a database for all non UK citizens. The database to contain all European Union national as well as all foreign nationals to ensure they don't cheat the housing benefit system. I know there are lots of fraud due to the government paying housing benefit to the tenant, now the tenant don't pay the rent, and secondly once they get tenancy agreement then they stop paying the rent and claim housing benefit, so the landlord evicts them, however the tenant use mail redirection letter with the post office services to redirect all housing benefit cheques to other address and they cash the cheque, when the innocent landlords have no idea whats going on as he have already evicted the tenant and knows nothing about the housing benefit claim as the landlord is not informed the tenant is claiming the housing benefit. Now why should the landlords get punished???
Look at the tenant, the tenant offers no security, they just run away with rent, furniture, and appliances, now when these tenants steal and leaves without paying rent then the landlord have to be very worried next time s/he rents out as they don't want same things happening again. So get the tenant sorted, get the law sorted to protect landlords too just like there is law overprotecting the tenants then see whether the landlord follows and works ethically.
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