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Landlords left out of pocket by rule change
A PETERBOROUGH private landlord has hit out at changes to housing benefit rules – claiming some tenants are "taking their rent money and running".
A PETERBOROUGH private landlord has hit out at changes to housing benefit rules – claiming some tenants are "taking their rent money and running".Altaf Hussain says he has been swindled out of 2,500 since the Local Housing Allowance (LHA) came in last April, which saw housing benefit paid directly to private tenants rather than landlords.
Today, the National Landlords Association backed his claims, revealing they had been inundated with calls from landlords out of pocket since the LHA came into force.
And landlords were growing increasingly wary of letting to tenants on benefits, he said.
The changes were introduced by the Department of Work and Pensions in a bid to make the system fairer for tenants by allowing them to manage their own financial affairs.
But Mr Hussain, of Salaam Court, New England, said some unscrupulous tenants were cheating the system instead of handing the landlords the money they were due.
He said: "People take the money and run. I can't recover the money.
"Giving the tenants the money is ridiculous.
"There must be thousands being ripped off like this."
Next page :A 'fairer' way to pay housing benefit
He also said the council was doing little to help make sure landlords got the rent money they were owed.
Policy officer from the National Landlords Association Vincenzo Rampulla said 42 per cent of landlords in the east of England said they didn't want to let to tenants on housing benefit because of the fear of them racking up rent arrears.
A further 23 per cent said they were afraid of mal-administration by the local authority and that was why they didn't want to rent to benefit tenants.
He said: "Landlords have to wait eight weeks before the local authority steps in. What happens if the tenant doesn't pay for seven weeks and then leaves? There is no hope of getting the money back in reality.
"Housing benefit is really important and helps people with housing costs. We are simply saying that the money given by the state to help with housing costs should be used for that.
"An obvious problem is rent arrears being racked up. Rather than ignore this, the Government and local authority should be proactive and do something about it. Landlords can't house people for free."
However, Peterborough City Council's benefits manager Geoff Rudd said: "In most cases this agreement works perfectly. However, the legislation does allow for housing benefit to be paid direct to a landlord in a small number of cases,which are reviewed on an individual basis."
Full details of circumstances when this approach can be taken can be obtained by calling 01733 452241.A 'fairer' way to pay housing benefit
LOCAL Housing Allowance (LHA) is a new way of calculating housing benefit which is based on the area the customer lives in, number of occupiers in the property and household size.
LHA is a much fairer way of calculating housing benefit, says the Government, as it ensures that tenants in similar circumstances in the same area receive the same amount of financial support for their housing costs.
If you are already on housing benefit, you will not be affected unless you change address and move into accommodation rented from a private landlord.
The LHA rates are calculated for individual areas, known as Broad Market Rental Areas, each month.
If the rent of the property you have negotiated with your landlord is lower than the LHA rate you will be able to keep any excess benefit up to a maximum of 15 per week.
If the rent is higher than the LHA rate you will be required to pay the difference or look for alternative accommodation within the LHA rates.
It is up to you to pay the rent to your landlord. If you don't you may be taken to court and evicted.
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