Councils get Help with LHA Payments

04 March 2012 Categories: News

Councils get Help with LHA Payments

The recent LHA cuts implemented by the government have obviously started to affect too many tenants in the private rental sector…as nearly £50million of tax payer’s money has now been allocated to county councils in order to help struggling tenants. It is hoped that the money – £6million of which is going to London councils – will help with the transition from the old style housing benefit to the new LHA payment over the next three years.

Since the second round of cuts was introduced in January hundreds of thousands of households who claim the LHA benefit and live in private rental properties have been forced to move from their homes and look for cheaper properties. Some have even had to move to completely new cities in order to find a property that they can afford and a landlord who will accept LHA tenants.

The £49million cash-boost will primarily be used by councils to help tenants in the private rental sector to renegotiate their rents with their landlords, and if this fails to help them locate properties they can afford to rent with the help of the LHA benefit they claim.

Whether any landlords in the private rental sector will be willing to lower their rents remains to be seen, but if some sort of incentive is offered by local councils it is a possibility for the long term.