Government to set limits on Local Housing Allowance
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The
Government decision to set limits on the level of Local Housing
Allowance (LHA) paid to tenants who rent homes in the private
sector could have big implications on prices and future rent
levels, says one specialist in the sector.
David Lawrenson, a landlord and property investor and author of
Successful Property Letting, says: "Even landlords who don't let to
benefit dependent tenants and tenants who don't get state aid to
pay their rent will be affected by the capping of Local Housing
Allowance (LHA) rates.
"The proposed reform of LHA rates has raised a lot of heat on
discussion forums. Some think private landlords are the villains of
the piece.
“Others blame the last government.
"Some say, usually those who stress they are taxpayers, that if
they cannot afford to live in, say, Westminster themselves, why
should they have to pay for those on benefits to live in such
locations?
"Others point out that cheaper accommodation is available below
the new capped LHA rates in most areas - and tenants should
therefore move into it, like people have to move when they need a
new job.
"The big concern is that the new caps could force vulnerable
people to move from old homes in these expensive areas to other
areas.
"One has grim visions of armies of grandmothers with
disabilities and young mums being forcibly moved to cheaper
boroughs further out.
"Meanwhile, tenants asked to move to cheaper areas rightly point
out that it was not they who sold off the council housing stock so
they should not have to suffer."
The site https://lha-direct.voa.gov.uk/Secure/LHASearchIntro.aspx
shows the level of LHA payable to tenants, according to the number
of bedrooms.
Friday, July 30 2010
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