The National Landlords Association (NLA), the UK’s largest representative body for private-residential landlords, has claimed that millions of pounds of taxpayers’ money is being wasted by a new method of paying housing benefit, the Local Housing Allowance (LHA).
LHA was introduced last year for new tenancies 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 tenants who are expected to pass on the rent money to their landlord. In practice, many tenants choose not to do so and this is causing major problems.
In the most serious cases, landlords are facing repossession because rent money which they rely on for mortgage payments does not arrive.
LHA is now contributing to a shrinking of housing supply for benefit claimants, and more pressure is being placed on social housing. As always, this will affect the most vulnerable tenants and increase homelessness. With a forecast £2.6billion being spent on LHA during 2009-10, the NLA is calling for immediate action.
Richard Price, NLA Director of Operations, said: "Landlords up and down the country need to join forces and demonstrate to Government just how much this new system is not working. If something isn’t done then landlords who currently operate in this market will be leaving in their droves and it will be the most vulnerable tenants who will be left out in the cold."
To support the NLA campaign on LHA, landlords involved in the LHA rental market should go to www.landlords.org.uk/lhapostcard
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Subscribe to this comment's feedThey don't listen
This government is full of crackpot ideas that defy all commonsense, and they always know best. This is why they will not be in power after the next election. Good riddance.
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Our Crackpot Gvernment
A way forward that might succeed in slowing the Labour government down would be to enlist the Conservative opposition and alert them to the facts. To have the whole topic raised in the House of Commons could serve to discredit the present government. Who is the Conservative Spokesperson on residential lettings ??
I have challenged Communities and Local Government on the LHA and HM legislation at a conference in their offices and my intervention was met by a complete and stunned silence from all the assembled Local Authority, Citizens Advice and Shelter big wigs present.
I dont think we can trust the NLA to do this for us.
Who can take this on board ???
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