November 7, 2011
LHA Caps set to make things difficult for private sector landlords
According to a recent survey conducted by the National Landlords Association over three quarters of buy to let landlords who are currently happy to accept Local Housing Authority tenants will think differently after the second round of LHA caps are introduced in the New Year.
Of the 528 landlords interviewed, 77% said that they are seriously considering reducing the number of tenants they accept who claim the LHA benefit, and over 25% admitted to reducing the number they already have by not renewing tenancy agreements.
In April 2011 the first round of LHA caps were introduced, targeting new tenants, but in January 2012 the second round is set to affect current tenants of private accommodation. Some tenants may only be affected by a few pounds a week but others look set to lose up to £300 per week in LHA payments.
Government figures show that over 1.3million UK households currently claim the LHA benefit, with the vast majority living in privately rented houses. Chairman of the National Landlords Association, David Salusbury recently commented on the proposed caps, saying that in the current economic climate capping the payments will inevitably lead to more tenants struggling to pay their rent.
He then went on to say that while the number of people claiming the LHA benefit continues to rise, the number of affordable private rental properties is, according to the survey, set to drop, so leaving the vulnerable with the even harder task of finding suitable, yet affordable accommodation.
