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Thursday, October 15, 2009

Time for landlords to tell the Government what they think of Local Housing Allowance

Its time for landlords to give feedback on the Local Housing Allowance.

The Work and Pensions Committee today announced an inquiry into “Local Housing Allowance” The Committee welcomes submissions, in accordance with the guidelines set out below, with reference to areas such as:

• The objectives of LHA and whether they are met in practice;

• Whether LHA is understood by claimants and landlords;

• The impact of direct payments to claimants on both claimants and landlords;

• Whether adequate and consistent mechanisms/processes are in place to help Housing Benefit Departments identify and assess vulnerable claimants;

• The boundaries and rent officer regulations which underpin Broad Rental Market Areas (BRMAs) and their impact on LHA rates and access to affordable rental properties for claimants in all communities including access to transport and work;

• Whether LHA incentivises landlords to raise their rents to the BRMA median rate;

• The £15 excess entitlement policy and the potential impact of its removal;

• The 5 bedroom cap, and;

• Whether advice services have the capacity to adequately support LHA claimants.

The Committee seeks written contributions on this issue from interested organisations and individuals. The deadline for written evidence is Monday 16 November 2009. Oral evidence sessions will take in the autumn.

Read more on what is required from a submission

Landlords need to speak now or forever hold their peace.


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6 comments:

cruisingmac said...

The LHA should be reviewed as the shortage of available rental accommodation is crittical and will only get worse.
Today we are a more mobile work force, so when we have to move for work it becomes very expensive.With a rent book that is all that has to be handed over.
To get the private landlords to provide the much needed accomodation, the payment should go direct to the landlord. This still does not protect the landord from change in circumstances of the tenant and so reduce payment.
A cross party discussion could help all parties.
Regards
Frank McGuirk

Anonymous said...

I own a number of rental property's in Torbay as does my father and my brother. We also work closely with other landlords in the area. Although we are selective who we rent our property's too as they are very well maintained and we dont want to run the risk of bad tenants we always did accept housing beneift in the past for the right tenant as long as the rent was paid directly to ourselves. However, since the introduction of the LHA and the condition that we are no longer able to request direct payments, our family have now stopped accepting any prospective tenants in receipt of benefits. We are not the only landlords that i am aware of in Torbay that has taken this stance. When i advertise a property now i receive many calls from tenants unable to secure decent affordable accommodation whilst in receipt of LHA. It is such a shame but i am running a business and am not willing to take a chance and run the risk of not receiving my rent. Both myself and my father have had bad experiences of trying to collect rents from LHA tenants and believe me the processes which have been put in place to protect the landlord from rent loss is a joke. The tenant has to be more than 8/10 weeks behind with their rent before the Council can intervene. But dont be fooled, you still wont get paid for the rent arrears. Landlord beware!!!!!!!!!!

Unknown said...

KIRKLEES COUNCIL IN WEST YORKSHIRE ARE CONSIDERING REDIRECTING RENT AFTER THE TENANT IS TWO WEEKS IN ARREARS. THE PROCESSING TIME IS CURRENTLY TEN TO TWELVE WEEKS AND THEN THE PROCESSING TEAM CAN MAKE PAYMENT BY ACCIDENT. WE ARE A LETTING COMPANY MANAGING HUNDREDS OF PROPERTIES BUT CAN ONLY TAKE ON TENANTS WHICH CAN PAY BOND FIRST. THIS CAUSE OF ACTION HAS RESULTED IN SHORTAGE OF STOCK FOR TENANTS WHOM CLAIM LHA. THE RATES FOR THE LOCALITY ARE GOOD. THE COUNCIL PROCESSING IS VERY BAD AND REQUIRES ALOT OF IMPROVING.

Unknown said...

Orinthia Blackpool
as a landlord in one of the towns that adopted the LHA it as been a disaster and cost me thosands of pounds but now its no cash then no home its the only way before we all go broke as a lot of landlords in blackpool already have and tenants now ask if the building is mortgaged or paid for as they have been moved out as the Landlord as had to sell or been repsest

Anonymous said...

I was left a house which I had to remorgage to modernise so I could sell. Due to the market it didn't so I had to consider renting. to I could only get LHA tennents, who didn't pass on a penny to me, from day one.The council said after 8 weeks they would help. The 12th week when the rent was due the tennent did a midnight flit owing me over one thousand pound. Council were absolulty bogged down with the same story throughout the town. Not only did I have my own mortgage to pay for and my own 4 children to keep, I was workin double, paying the morgage for my tennents to live in my house.....great!!! well done labour party! Like I said to the council. It's tax payers money which pays these peoples rent, so it was our money to start with, it's our houses they are living in, so it's our money at the finish. What right have the government got to give our money to someone who has done nothing to earn it.

Anonymous said...

Have several properties in Derby, took on pre-LHA benefit tenants, which was ok-ish, but, since LHA intro, tenants who are not used to having cash in their hand are sent maybe 8 weeks money in one go. If you were desperate, what would you do? I HAVE NOW EVICTED MOST OF MY 'CHARITY CASES'. I have empty properties, which is better than LHA tenants, who often cause more damage than the income I receive. To top it all, although landlords have not received rent, if the benefits system find a fault in the claim, they still deduct off the landlord! I doubt I would touch any but perfect benefits tenants again, whatever the system, but only landlords prepared to step outside the law can be attracted by this system.