Landlord clients need to be aware of various changes the government is making to benefits payable to local authority tenants. One aspect of this is that there will no longer be a £15 weekly payment if the tenant finds a property to rent at less that the weekly Local Housing Allowance. This benefit meant that a tenant could be £15 a week better off if he or she found a property at below the LHA rate. In future the benefit will not be paid on top of the rent.
Some feel the withdrawal of the £15 excess payment will make it more difficult for tenants to meet their rental obligations because it will reduce the amount coming in to the family budget. It is part of the wider reform of the benefit system which includes new limits on the rents that will be covered with the maximum based on a four bedroom house.
Do you have local authority tenants? Let us know what you think about the new rules.