Ahead of planned cuts to Local Housing Allowance (LHA) due to come into effect on 1st April 2011, tenant eviction specialist, Landlord Action, are once again hosting a one-day Local Housing Allowance seminar in an endeavour to educate confused landlords on the system.
A topic of much debate, many industry figures have commented on the potentially damaging effect that these cuts will have on thousands, increasing tenant indebtedness and causing landlords to fall into mortgage arrears.
Paul Shamplina, Founder of Landlord Action, comments:
“Since the current LHA system came into effect in April 2008, our instructions against tenants in this sector have rocketed. In 2010, Landlord Action’s cases relating to LHA tenancy failure rose by 16%.
"The LHA system can work but landlords are increasingly put off renting to this sector and current incentives, by way of direct payment, come at the price of lower rent, which naturally doesn’t have great appeal. I feel that landlords do not truly understand the capping system coming into effect.”
Councils rely on landlords in the Private Rented Sector to help provide accommodation to social tenants, but with the forthcoming reduction in allowance likely to plunge people into further arrears, landlords are going to be increasingly sceptical.
Paul continues:
“If we don’t educate landlords now, they will leave the social sector altogether and focus on the Private Rentals where they can charge higher rent to tenants who aren’t claiming Housing Allowance. This could be a counter-productive situation for the Government. Council Housing has an average 5 year waiting list, so the Government cannot afford to lose landlords.”
The seminar, hosted by Shamplina, will be geared towards providing private landlords, letting agents and temporary accommodation suppliers with greater understanding of the LHA system and the impact of the new proposals.
The event will also welcome top experts in the sector including Bill Irvine, director of HB Advice & Advocacy and former head of benefits for one of the UK's largest councils, and John Craddock, who has over 20 years experience at The Rent Service and The Valuation Office Agency and whose research has a direct effect on LHA in London.
The seminar will be held at the Holiday Inn Kensington Forum, London on 25th March 2011 from 9.00am to 5.00pm, Along with one being held at the Crown Plaza, Birmingham on Friday 8th April 2011.
All Delegates will receive lunch and refreshments as well as a comprehensive education pack detailing everything to do with Local Housing Allowance.
