06/04/2009 - Benefit reforms failing landlords
Research has found many social tenants are failing to pass on their Local Housing Allowance (LHA) to landlords following changes to the benefit system.
According to the National Landlords Association (NLA), a significant amount of tenants are not paying rent after changes to the system in April last year meant housing benefit was paid to tenants, rather than being paid directly to private landlords.
The NLA has warned that the system is causing major problems for landlords and could lead to more people being made homeless.
It said that in the most serious cases some landlords face having their properties repossessed as they are no longer receiving an income from rent.
Although local authorities can take action and start to pay the rent directly to landlords, nothing can be done until tenants are in rental arrears of eight weeks, but some have to wait up to three months before they receive their first payment.
As a result 52% of landlords say they will not or are less likely to let a property to a Local Housing Authority tenant, and 43% of landlords who have a LHA tenant said they will be leaving the market because of the increased uncertainty of payments.
Copyright © Press Association 2009
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