According to the Chartered Institute of Housing, Direct payments of local housing allowance has not been problematic to the private rented sector.Using data drawn from the 'cherry picked' test areas they will argue that the Direct payments of LHA has had no negative impact on the sector at a Work and Pensions select committee, which meets this morning.
This flies against all the feedback we've received from landlords who report facing increased rental arrears, which have moved many landlords to refuse to rent to LHA tenants.
Maybe we were just imagining it all!
Maybe there's not a problem with the LHA direct payment system after all.
Maybe all us landlords are just mad! Mad I tell you!
As a local provider of low cost PRS accommodation I make it a condition that LHA will be paid direct to me or there will be no tenancy.
ReplyDeleteIts interesting that my local H/B office recently introduced an additional condition that makes LHA payable direct to the landlord. If the applicant gets the councils deposit bond LHA is paid direct.
This is as a result of tenants abusing the LHA causing a large amount of claims on the council deposit bond.
Funny that don't you think?
Kevin