November 14, 2011
The government risks pushing three-quarters of the UK’s private landlords out of the Local Housing Allowance (LHA) market if proposed caps on housing benefit payments are enforced.
A survey by the National Landlords Association (NLA) found that found 77% of landlords who have LHA tenants are considering, or already taking, steps to reduce their involvement in the LHA market.
In addition, 25% of those surveyed say they are already reducing the number of tenants they have on housing benefit payments, and that figure could rise to 50% in the near future.
Nearly 1.3 million households currently claim LHA across the UK. But under the government’s changes, benefits payments will be based on the 30th percentile of local average market rents, rather than the previous 50th percentile, thereby limiting the maximum benefit available based on the property size.
“The shortage of housing across the UK is putting even greater pressure on the private-rented sector,” commented David Salusbury, NLA Chairman. “Capping housing benefit payments at this time will only lead to more people struggling to pay their rent.
“The Government must monitor the impact of the roll out of LHA caps. It is essential that tenants are not left at risk and that landlords can continue to provide this accommodation for the more vulnerable in society.”
