Letting expert warns that the LHA could be encouraging fraud.

Letting expert David Lawrenson has warned that the Local Housing Allowance (LHA) may be encouraging fraud.

This is because the LHA often pays more than the prevailing private sector market rate in the same area.

The result is that some tenants are offering to let the property for higher than the market rate and then split the profit rent with the landlord according to David.

For more on the Local Housing Allowance