LHA 'is damaging social lettings market'

News Category: Management

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Landlords and tenants may be suffering from negative repercussions as a result of flaws in the Local Housing Allowance (LHA) system, according to an industry body.

The National Landlords Association has raised concerns that the recently introduced system, which sees housing benefits paid to tenants instead of landlords, is encouraging non-payment of rent.

This in turn is leading to a number of landlords facing repossession, thereby damaging the sector and impeding the ability of benefit claimants to gain access to rented accommodation.

Richard Price, NLA director of operations, has called for action to be taken before rental property owners are driven away from the market entirely.

He said: "Landlords up and down the country need to join forces and demonstrate to the government just how much this new system is not working."

This comes after Let Insurance Services last week warned letting agents and landlords to ensure they have guarantees and safeguards in place to protect their businesses from the repercussions of rental arrears.

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