Tuesday, 31 March 2009

No Benefits for Landlords



The government’s decision to pay housing benefits direct to tenants rather than to landlords continues to cause chaos. Almost a year ago it was decided to pay Local Housing Allowances – LHAs – to tenants in the vague hope that they would use them to pay their rent. It’s led to a shambles in the renting market.

The National Landlords’ Association is bringing out a survey which says that 52 per cent of landlords are now less likely to let their properties to people on benefits. And of those who are already letting to people on benefits more than 40 per cent said they would be less likely to do so again when the present tenancies expire.

Reports are coming in from disgruntled landlords across the country who say that tenants on benefits move in – pay up for a couple of months – then when they are settled they simply stop paying rent and spend the money in a variety of other ways. There is said to be a huge jump in the number of evictions because of the non-payment of benefit-rent.

Landlords report that some benefit tenants prefer to spend what is supposed to be their rent money on drink, drugs and holidays.

Beleagured Employment and Welfare reform boss Tony McNulty – who’s currently trying to sort out his own parliamentary benefits – is expected to bring in changes.

McNulty is one of a number of MPs who have been criticised over their allowances. He had claimed allowances for a house his parents live in – while Home Secretary Jacqui Smith’s husband charged expenses for watching blue movies.

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