Millions of pounds of taxpayers’ money is being wasted by the new method of paying housing benefit, the Local Housing Allowance (LHA) claims The National Landlords Association (NLA).
LHA was introduced last year for new tenancies when it replaced the old housing benefit system. Under the new rules, instead of rent being paid directly to private landlords to cover housing costs, it now goes straight to tenants who are expected to pass on the rent money to their landlord. In practice, many tenants choose not to do so and this is causing major problems.
The NLA says in the most serious cases, landlords are facing repossession because rent money which they rely on for mortgage payments does not arrive. LHA is now contributing to a shrinking of housing supply for benefit claimants, and more pressure is being placed on social housing.
The association says this will affect the most vulnerable tenants and increase homelessness. With a forecast £2.6 billion being spent on LHA during 2009-10, the NLA is calling for immediate action.
Richard Price, NLA Director of Operations, said: “Landlords up and down the country need to join forces and demonstrate to Government just how much this new system is not working. If something isn’t done then landlords who currently operate in this market will be leaving in their droves and it will be the most vulnerable tenants who will be left out in the cold.”
To support the NLA campaign on LHA, landlords involved in the LHA rental market should go to www.landlords.org.uk/lhapostcard
* NIDirect, the official government website for Northern Ireland citizens has issued a reminder to landlords and letting agents that they must pay their rates account in full by 30 September to receive an allowance.
If your rate account is not credited with the full amount by this date you will not receive this allowance.
You should allow five working days for your payment to reach your rate account. If you make a payment on or after 25 September, you risk the payment not being processed on time.
Please note that if you pay at a Post Office, you should allow ten working days for the payment to be credited to your rate account.
Eligible landlords can qualify for the following:
- an allowance of 7.5 per cent on the rates owed on all domestic properties with a rateable value that does not exceed £150,000
- an allowance of 7.5 per cent on the rates owed on business properties with a rateable value that does not exceed £1,590
- exemption from rates on vacant domestic properties.
