Call to change Local Housing Allowance

The National Landlords Association (NLA) is calling for the Government to introduce dramatic changes to the Local Housing Allowance (LHA) immediately.

LHA replaced the old housing benefit system in April 2008. Under the new legislation, benefit money to cover social tenants’ rent is now paid directly to them, rather than going straight to the landlord as it used to.

As a result the NLA calculates that landlords are now owed up to £220m in rent arrears, where social tenants have failed to pass the money on.

The NLA says that this is causing increasing numbers of landlords financial difficulties, and is also detrimental to tenants as some landlords are now refusing to let their properties to social renters.

It is calling on the Government to change the rules quickly. David Salusbury, NLA chairman said:

 “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 promised to resume payments direct to landlords if they come into power next year.