Housing benefit shake up risks landlords' incomes

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Landlords' rental incomes could be at risk because of changes to the Government's housing benefit scheme, according to the National Landlords Association (NLA).

The NLA says the replacement of traditional housing benefit with a new local housing allowance (LHA) will have far-reaching implications for landlords who provide rented accommodation for those on benefits. Current housing benefit is paid directly to the landlord by a local authority, whereas the new LHA system will mean tenants receive the cash and it is then their responsibility to pass on the allowance to their landlord. The NLA is concerned this might mean benefit tenants are tempted to use the money for other purposes and will fall into rental arrears. David Salusbury, chairman of t...

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