New Style Insurance Policy to be used as an Incentive for LHA Landlords

14 July 2012 Categories: News

New Style Insurance Policy to be used as an Incentive for LHA Landlords

A new style insurance policy that covers rent arrears, eviction costs and any costs associated with malicious damage caused by LHA tenants is being offered to local authorities in a bid to help them entice private landlords to accept housing benefit tenants. The policies, which are taken out by local authorities on behalf of private landlords, are being offered by Settled Housing Solutions and apparently took over 2 years to develop.
According to Alan Elborough, co-director of Settled Housing Solutions, local authorities can use the new style policies to replace ‘landlord incentives’ which cost each authority an average of £65,000 per year. The figures presented to the 61 local authorities in England have been looked at with much interest however only Runnymede Council in Surrey has so far agreed to try the scheme.
Mr Elborough commented on the new style incentive saying “Local authorities desperately need private landlords to help provide housing, so they are offering incentives such as rent in advance.

And because it is such a highly competitive market, it has led to ‘incentive inflation’. If one local authority is offering two months’ rent in advance, a neighbouring council will offer three.

“It is very costly for local taxpayers.”
It is hoped that every local authority will agree to take out the insurance policies, so saving a collective £3.98million each year in landlord incentives.