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Landlords letting to tenants on benefits are more than aware of the potential risks of letting to these types of tenant. Many landlords maintain that the risks of not being paid have increased markedly since the introduction of the Local Housing Allowance (LHA).
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We recently reported on the anomily of the Local Housing Allowance now being practiced by the government who now pay tenants housing benefit leaving private landlords with the job of having but continue to pay social landlords direct. This puts private landlords at a considerable disadvantage. Particularly given that many private landlords are amateur landlords and do not have the resources available to them that the likes of Housing Association's do have to chase non paying tenants.
An practical example of just what can happen as a result of the Local Housing Allowance has recently come to light in Huddersfield.
The Yorkshire examiner reported that 2 Huddersfield landlords were left thousands of pounds out of cash because of the way the new Local Housing Allowance works.
John says he lost £5,000 in legal costs and rent trying to evict a tenant who was pocketing her LHA. He has already lost £1,400 from a current LHA tenant who has not paid him.
He said: “It’s the stupidest law ever brought in. The system does not work.
“There’s nothing to stop a tenant going into a property, living rent free, pocketing the money and moving on.”
Meanwhile, Jane says she lost £5,000 last year evicting a tenant who was pocketing her LHA.
She said: “I think it’s disgusting. When I rang the council to tell them what was going on they said all they could do was advise her to pay me!”
The comments of one Department Works and Pension spokesman were less than then helpful
A DWP spokesman said: “We do know that there will be some customers who can’t manage their own rent payments, which is why there are comprehensive safeguards to stop these customers falling into unmanageable difficulties.
“If it appears someone is not paying their rent, landlords are encouraged to contact the local authority who pay the benefit”.
Sounds to me like an official trotting out the party line. If is such a brilliant system why not roll it out to social landlords then? No one from the government has yet come up with an answer to that!
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3 comments:
I agree entirely. I am a private landlord on the Isle of wight where there is high unemployment and low prospects of employment. Many tenants rely on housing allowance unfortunately since this was brought in I have rented 8 properties to new tenants every single one is in arrears most by 2 months and the local council are still continuing to pay the tenants the allowance this is a nightmare.
i am a private tenant as I am a law student with 5 children, my rent is payed direct to my landlord as this is what i asked for, but i belive if your tenant is more than 8 weeks behind on their rent you can request the the rent is payed direct to you, i hope this helps, if you have a 4 bedrrom house on the isle of wight that you want to rent please let me know as this is where i am trying to move to
I too am a private tenant and single with 3 children. I have been struggling now for a while to rent a 3 bed house as no one will accept housing. So my children and i are stuck in a 2 bed house, i dont get full housing as i work part time. I have been with the same employer for 11 years and my boss has been my landlord for 5 years so i have fantastic references yet no one will help me. Its so frustrating!!
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