LHA cuts force Landlords to reconsider benefits sector

29 April 2012 Categories: News

LHA cuts force Landlords to reconsider benefits sector

A recent survey conducted by the National Landlords Association revealed that nearly half of its members feel they can no longer afford to rent their properties to tenants receiving LHA benefits, and as a result they would almost definitely stop considering LHA tenants for their properties. Similarly nearly 70% of the landlords that responded to the survey felt they would completely withdraw from the benefit sector within the next three years.

The recent cut in LHA payments has meant that claimants can now only be awarded a maximum of 30% of the local average rent, whereas before the cuts it was 50%. Also, the age at which claimants can claim for more than a single room in a shared house has been increased from 25 to 35, meaning more people are being forced to share…a prospect that could result in landlords then needing to register their property as a HMO.

Chairman of the NLA, David Salusbury, commented on the findings saying; “It’s concerning that so many landlords appear to be planning to withdraw from the LHA market within just three years, as they can no longer afford to let their properties to tenants at the reduced benefit rate.”

Local councils have been given permission to contact private landlords with the option of direct LHA payments in return for reduce rents, however it seems that only 25% of councils have so far made any effort to speak directly with landlords about the matter.

1 Response to “LHA cuts force Landlords to reconsider benefits sector”

  1. Jennifer Swann 25 May 2012 at 3:43 pm (PERMALINK)

    I have a property with but the insurance is so ridiculously more expensive if you let to the council that i just cannot afford to do it which is a shame as I’m guaranteed money and a tenant that way!