"Government's Incentive For Landlords Must Be Met With Caution" Says Landlord Action

publication date: Jan 6, 2011
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

"Government's Incentive For Landlords Must Be Met With Caution" Says Landlord Action

Local Housing Allowance

Paul Shamplina, from Landlord Action believes the approach that the Government are now taking to offer private sector landlords the option to choose to receive Local Housing Allowance directly if they reduce their rents, must be met with caution, especially as it is only a temporary agreement and not a permanent return to direct payments.

Paul, Founder of Landlord Action, comments "On the one hand, as landlords and property professionals, we welcome any move that offers direct payments with regards to housing benefit tenants. Landlord Action has been campaigning on this front for some time now.

However, we must wait and see how landlords will respond. Security of direct payments is coming at the price of lower rent due to the government LHA caps being introduced in April 2011. This makes sense since landlords will be taking less risk under this scenario. However, many landlords will find housing benefit tenants unappealing when they can achieve higher rents by letting to, for example, 'professional tenants'.

We may find a situation where tenants on benefits will find it even harder to find suitable accommodation which, in the long term, will not help combat homelessness and cutting down waiting lists for housing.

Furthermore, if the Government can offer direct payments to one group of landlords, there is no reason why they cannot offer it to all landlords that take on tenants that are claiming Local Housing Allowance."

If you are thinking of becoming a buy to let landlord or investing in property, don't spend a penny without buying our comprehensive Buy to Let Pack or Property Investment Pack!


Email enquiries@designsonproperty.co.uk for a one of our FREE Property Checklists.

Do you have a property question? GET AN INDEPENDENT ANSWER! ASK US via our PROPERTY FORUM, email enquiries@designsonproperty.co.uk or call 0845 838 1763.

Get a helping hand with Kate Faulkner's Buy to Let Property Pack for just £59.95!

This unique service, where you purchase a ‘property project pack’ gives you:-
  • An A4 ‘how to’ guide (approx 80 pages), containing Dos and Don’ts, Factsheets, Checklists, Handy Tips and Forms
  • Access to Kate and her team, by phone and email, for any queries you might have during your project.

See the full list of Kate Faulkner's unique Property Services here!

Need help with a property problem? Have a question? Why not call Designs on Property on 07585 897128 or Contact Us via email.
NALS Conference Chair 2016

Kate's Consumer Portal

FREE Buy to Let eBooks

Download a copy of our
Buy to Let Show eBooks
for FREEsimply click on
the image below

Buy to Let Show - download our Buy to Let eBook for FREE