Housing allowance 'must be passed on to landlords'

News Category: Industry News

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Tenants must be required to pass on benefits from local housing allowance to landlords if they are behind on rent payments, says the National Landlords Association (NLA).

For tenants who are made unemployed, local housing allowance as well as state benefit are available sources of financial help.

However, Simon Gordon, head of communications at the NLA, promotes the interests of landlords operating in the residential lettings sector, warned that in the current recession, landlords are reliant on rent to finance their buy-to-let mortgage repayments.

"It is more important than ever that local housing allowance, which is now paid directly to the tenant, is passed on by the tenant to the landlord to pay the rent," he said.

Mr Gordon's comments come as landlords and letting agents could be considering products such as rent collection software or rent guarantee insurance to assist their operations in the current financial climate.

Indeed, the NLA said 74 per cent of calls to its advice line over the last year have been from landlords enquiring about procedures to follow when dealing with tenants who have fallen behind on their rent payments.

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