15
Dec
Government 'should reinstate LHA direct payments for landlords'
Landlords with tenants receiving local housing allowance (LHA)
should be allowed to receive direct payments, an industry body has
argued.
The National Landlords Association (NLA) has urged the government
to amend the benefit system to offer tenants the choice of rent
payments being made directly to their landlords.
A spokesperson for the organisation said that, because tenants
automatically receive the money themselves, much of it is not
finding its way to the landlords, who subsequently struggle
financially.
He stated: "[It] has been putting significant financial pressure on
landlords and so directly contributes towards landlords potentially
defaulting on mortgages and accruing large amounts of rent
arrears."
The market would benefit significantly if the option of direct
payments is reinstated, the NLA representative added.
On December 14th, housing charity Shelter released research which
found that 95 per cent of people receiving LHA are finding it hard
to manage their finances.
According to the survey, 81 per cent of respondents claimed that it
is fairly or very difficult to find an affordable home that meets
their needs.