Buy to let landlords 'not milking housing benefits'

28 July 2010

Written by David Whittaker

Buy to let portfolio investors are not using the housing benefits system to make extra cash, one expert has argued.

Dr Vincezo Rampulla of the National Landlords Association (NLA) suggested that the government should increase its understanding of the private rented sector in order to dispel the myth that professionals in the industry are making money out of welfare payments.

Proposals that local housing allowance (LHA) rates should be cut and housing benefit capped will harm both tenants and those who lease out property, he stated, blaming lawmakers for being influenced by headlines from the Daily Mail and Daily Telegraph.

There is an opinion that professionals in the private rented sector are profiting from excessive housing benefit at the expense of the taxpayer, Dr Rampulla noted, saying that the reality was much different with the average LHA award standing at £113.38 per week.

David Salusbury, chairman of the NLA, recently welcomed a House of Commons Work & Pensions Select Committee inquiry into the proposals.

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