The NLA said that LHA was one of the most potentially damaging issues facing the private rented sector and landlords should not have to risk higher levels of rent arrears just because they let to housing benefit claimants.
Introduced in 2008 to replace housing benefit, LHA was intended to give greater choice to benefit recipients. However, the NLA said all it has achieved is a reduction in available housing and forced many landlords to leave the sector.
NLA research in 2009 found that 949 landlords had lost £4.229m from LHA-based rental arrears. Since that time, LHA recipients have grown 47% to 993,000.
Vincenzo Rampulla, public affairs officer for the NLA, said: “The Government promised before the election that they would tackle the LHA rent arrears waste which is running into the millions. It is an easy step to introduce choice for LHA tenants and enable them to have their LHA payment made directly to their landlord, if they wish to.
“The NLA is only asking Ministers to give LHA tenants the same choice available to most people when they set up a direct debit or standing order for their rent.”
