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More landlords quit Local Housing Allowance market

More landlords quit Local Housing Allowance market

Increasing numbers of landlords are quitting the benefits market.

According to the latest research from the National Landlords Association, the proportion of landlords letting to tenants in receipt of Local Housing Allowance (LHA) has fallen to 27%, a 7% reduction since quarter one this year.

The research, based on 1,066 interviews in June, also found that 38% of landlords are worried about the impact of Universal Credit.

The reluctance to let to this market is strongest amongst the smaller landlords, with six in ten ruling out letting to this tenant type.

Carolyn Uphill, chairman of the NLA, said: “Our research highlights how worried landlords are about the impact of Universal Credit and that they are choosing to withdraw from the LHA market.

“This concern is understandable, particularly with the uncertainty that the changes to the benefit system bring. Quite simply, they are worried the rent won’t be paid and that they will not have the system of direct payment to fall back on.

“However, the Government relies on the private rented sector to support the provision of housing for those in receipt of benefits, so it needs to act quickly to restore landlords’ confidence, showing it grasps the practicalities of renting.”