Tenant Despair at Housing Benefit Cuts
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By: Madalena Penny
This week the RLA (Residential Lettings Association) called for all landlords to support their campaign concerning the proposed changes to the Local Housing Allowance. In a bid to make the coalition government understand that their alterations to housing benefit rates will have a serious impact and result in negative consequences not only to tenants but also to landlords and social sector housing.
The proposed cuts, which will take effect in April and October next year will no doubt see thousands homeless as a result of the governments decision. Presently, the UK has a population of approximately 61,113205. According to government national statistics, the population is forecast to increase by 4.3 million by 2018 and if current trends continue, we should expect this figure to increase to 71.6 million by 2033.
As new builds are at their lowest since the 1940s, social housing waiting lists are at a record high of 4.5 million, lending on both mortgages and buy-to-lets are severely constrained, over-crowding is on the increase and unemployment is rising. If the coalition government continue to enforce LHA cuts, the UK will no doubt see a housing crisis of serious magnitude as landlords are forced to evict tenants due to the government’s proposals.
The only bias landlords have against tenants in receipt of LHA is from the government’s policies enforced through payment legislation. Because of LHA payment rules, which insists payment is paid direct to the tenant, landlords are left paying the cost, as payments are not always received from LHA tenants, leaving landlords shunning tenants on benefits in favour of working tenants. Further cuts in LHA rates will no doubt result in the final nail in the prospective tenant’s coffin.
Pre-election, the conservative party announced that should they become the next government, they would re-instate the tenant’s right to have LHA payments made direct to the landlord. As of yet this has not transpired.
Up to the end of 2009, there were 675,000 LHA tenancies and rent arrears in this sector were considered to be in excess of £220 million, however the true extent of rent arrears to date is as yet unknown.
Legal 4 Landlords are backing the RLA’s campaign and are asking all their members to do the same. You can register your opinion by clicking on the following RLA link.
Click here if you have Housing Benefit tenants and receive Local Housing Allowance.