Direct LHA payment to landlords called for - buy to let mortgages

21 May 2009

Landlords looking after tenants who are part of the Local Housing Allowance (LHA) scheme should receive the benefit money directly, it has been suggested.

According to Clarity Commercial manager Chris Jenkins, the current system means that some landlords with buy to let mortgages will not always get their rent.

"At the moment the only way that a landlord is allowed to take payment directly is if their tenant is two months in arrears and if this is the case it is unlikely that any landlord will allow the tenant to stay anyway," he explained.

Mr Jenkins said there is currently a lack of awareness about the LHA programme and the benefits it provides.

One specific initiative sees local councils pay the property deposits on behalf of tenants, as long as the money is put into the government-backed tenancy deposit scheme.

The number of landlords who house benefit claimants has more than doubled year-on-year in 2009, research group BDRC reported this week.

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