Landlords want to avoid LHA tenants

UK Landlords Want To Avoid Tenants Claiming Benefits

UK landlords could soon be forced out of the Local Housing Allowance (LHA) market by the Government cap on housing benefit payments.

77% of UK landlords who currently accept tenants claiming benefits are already planning to, or are actively taking steps to reduce their involvement with DSS/LHA tenancies because they are physically unable to afford to continue letting their properties on lower rates of LHA.

A survey by the National Landlords Association (NLA) found that over a quarter of landlords who responded said they were already actively reducing the number of tenants who are currently receiving housing benefit payments, half of all other respondents also said that they were planning to reduce the number of DSS tenants.

UK households currently claiming Local Housing Allowance number nearly 1.3 Million. This could have a devastating effect for many UK landlords as the LHA is now subject to a cap on its upper limits including a maximum 4 bedroom rate.

David Salusbury, Chairman of the National Landlords Association said “The capping of housing benefit payments will lead to more people struggling to pay their rent at a time when a shortage of housing is increasing pressure on the private rented property sector. The NLA urge the Government to monitor the impact of rolling out LHA caps to ensure vulnerable tenants are not placed at risk and landlords can continue to provide this accommodation”.

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