Local Housing Allowance 'not going to landlords'

Posted: 15 Dec 2009 11:57:03 GMT

The Local Housing Allowance (LHA) is not finding its way into landlords' pockets as intended, the National Landlords Association (NLA) claims.

LHA initially allowed tenants to choose whether the benefit was paid directly to the landlord or into their own bank account.

Since last year's reforms the allowance has been going directly to tenants and according to a spokesperson from the NLA, this is putting "significant financial pressure on landlords and so directly contributes towards landlords potentially defaulting on mortgages".

The spokesperson goes on to add that now tenants receive a direct payment they are accruing large amounts of rental arrears because of the current financial climate.

He states that the LHA has been failing since day one.

According to the NLA, the total value of rental arrears since the introduction of the LHA could be in excess of £220 million, with the average landlord being owed £4,000 from tenants who qualify for the benefit.

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