15 Dec

Government 'should reinstate LHA direct payments for landlords'

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.ADNFCR-1222-ID-19513461-ADNFCR

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