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Local Housing Allowance: “Less talk, more action,”

Local Housing Allowance (LHA) 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, NLA Chairman, commenting about the failed LHA, 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 recently announced they will reinstate direct rent payments to landlords where housing benefit tenants choose, if they form the next government.

Have your say on this story using the comment section below.

0 thoughts on “Local Housing Allowance: “Less talk, more action,”

  1. Mick Roberts says:

    96% of my tenants on LHA are in arrears.
    I have had tenants been me with me 8 years-no arrears whatsoever. Now they are on LHA, they are in debt.
    They’ve been camping all weekend on the LHA money.
    They’ve paid their gym membership using the LHA money & not had enough to pay the rent.
    They’re getting bank charges they’ve never had before because LHA is being paid into their bank & this is being used to pay direct debits etc. & not enough left over to pay the rent.

    And this week alone, I’ve had a girl lose two stone in weight in the two months she’s been on LHA ’cause she’s being using the LHA money to buy her drugs & consequently lose the weight-All because the Govt have been giving her £440 every 4 weeks-Her drug habit is now worse.

    If a tenant hasn’t handed over for example £200 for the rent that the LHA has put in her bank, what sane person would then 2 week later give her another £200 & then another £200 all the way to 8 weeks £800? Why give 8 weeks £800? If someone’s spent the first £200, why give them any more? Because that’s what the Govt/Housing Benefit do-They say we must wait for 8 weeks arrears to build up before they pay the Landlord direct-Why? What sensible person would deliberately put a tenant into debt? Help their drug problem? Put a Landlord at risk of repossession?

    Why not just err on the side of caution to protect a tenant’s home & just pay pay the Landlord if there is any doubt whatsoever.

    Mick Roberts 07976 742863


    Hope for the Best
    Plan for the worst

  2. Major Landlord says:

    You are SO right. The reason why many people are on housing benefit in the first place, is that they have proven incapable of running their lives and finances properly. So why should they be trusted with other peoples’ money?

    But the problem is our wonderful government. They have their trendy ideas of empowerment, and they ALWAYS know best. They are happy to make free and easy with your money and mine, because it costs them nothing. In fact, if it helps to erode our wealth, that makes them happy – it’s all part of the redistribution of wealth which is their committed policy.

    The only solution is to remove them at the next election, and give the Conservatives a chance. They could hardly be worse than this lot. At least Grant Shapps is listening.