Buy to let market 'needs LHA rent arrears tackled'

16 June 2010

Written by David Whittaker

The government must keep its pledge to reduce Local Housing Allowance (LHA) rent arrears waste, which could damage the buy to let market, one expert has said.

Vincenzo Rampulla, public affairs officer at the National Landlords Association, has commented that those receiving housing benefits should be offered the same options as most other people when they arrange a direct debit or standing order to pay their rent.

"It is an easy step to introduce choice for LHA tenants and enable them to have their LHA payment made directly to their landlords, if they wish to," he stated.

Currently, arrears are running into the millions, he added, while the allowance is one of the most significant issues threatening the private-rented sector.

Introduced on April 7th 2008, it was designed to provide a wider range of choices to recipients, but LHA has actually led to a decline in available housing and has driven many landlords out of the market, he noted.

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