Landlords show concern

Oct 10 2008

A LETTER was published in the Ayrshire Post recently from a landlord distressed at the impact of the new Local Housing Allowance on his business. He stated that he had already lost £8000 in rental income.

This allowance was introduced on April 7. It was designed to replace housing benefit payments to new tenants in privately let accommodation and those whose benefits alter after that date. One of the main changes is that payments are to be made direct to tenants except in cases where tenants are considered vulnerable. This is a huge concern for landlords as the old system allowed tenants to opt for payments to be made direct to their landlords.

Many tenants have made it clear that they would prefer the allowance to be sent to their landlord as they either do not have a bank account or have concerns about handling relatively large sums of money. This option is not permitted under the new system

For three years to 2008, landlords associations lobbied the Department of Works and Pensions (DWP) to consider the potential consequences of sending cheques to some tenants who may be disposed to cash the cheque and spend the money rather than pay the rent to their landlord.

As a result of these changes, many landlords have preferred to seek working tenants, thus reducing the number of privately let properties available to those on benefits. Some landlords have sold up.

Concerned landlords (and tenants) should contact our association. Views will be forwarded to the DWP and relevant government ministers in an attempt to amend or repeal the act.

South Ayrshire Landlords Association

28 Green Street Lane

Ayr

KA8 8BH

ayrimcscotland@

tiscali.co.uk