Landlords may shy away from renting to LHA tenants

Posted under General by Alan

The LHA – the local housing allowance – will replace housing benefits in April 2008. Today, the housing benefit is paid directly to the landlord. The LHA will be given directly to the tenants to find a suitable accommodation and pay the landlord themselves.

According to the National Federation of Residential Landlords – NFRL – many landlords will not take the risk of not getting any.

If the landlords refuse to rent to benefit tenants, it would have a big impact on UK’s social housing. There are four hundred and fifty three thousand benefit tenants living in private rentals. If that number reduces, it would put more pressure on the local authorities and other social housing providers. They are already short of housing capacity.

Tom Reynolds, who is a letting agent in Cheshire says that after a trial in St Helens, landlords have complained about not been paid rent. The landlords did not have any problems with the housing benefit tenants as they got their payments regularly. Elizabeth Brogan of National Landlords Association tenants should have the option of the LHA paid directly to the landlord.

Tenants who live in council accommodation or other forms of social housing will continue to have their rent paid directly to the housing provider.