{"id":149,"date":"2010-06-04T09:27:51","date_gmt":"2010-06-04T09:27:51","guid":{"rendered":"http:\/\/blog.legal4landlords.com\/?p=87"},"modified":"2010-06-04T09:27:51","modified_gmt":"2010-06-04T09:27:51","slug":"lha-payment-policy-review","status":"publish","type":"post","link":"https:\/\/dev.withcreative.co.uk\/lforl\/lha-payment-policy-review\/","title":{"rendered":"LHA Payment Policy Review?"},"content":{"rendered":"<p><strong> <\/strong><\/p>\n<p>Residential rental arrears have had a massive negative impact on private landlords in the UK.\u00a0 The introduction of the policy by the then Labour government in April 2008 for <a class=\"wp-caption\" title=\"LHA Payment Scheme\" href=\"http:\/\/www.legal4landlords.com\/rental-payment-scheme\/\" target=\"_blank\">LHA payments<\/a> to go direct to the tenant, rather than the landlord has had a detrimental effect on the private residential sector.<\/p>\n<p>Pre-election, the Conservative Party announced that should they become the next government, they would re-instate the right for tenants to direct payments straight to their landlord.\u00a0 The emergency budget on June 22<sup>nd<\/sup> will disclose new government policies, including the much worrisome hike in capital gains tax and a likely vat increase.<\/p>\n<p>Up to the end of 2009, there were 675,000 LHA tenancies and <a class=\"wp-caption\" title=\"Rent recovery\" href=\"http:\/\/www.legal4landlords.com\/rent-recovery\/\" target=\"_blank\">rent arrears <\/a>in this sector were considered to be in excess of \u00a3220 million.\u00a0 Currently there are 3.3 million households accommodated by the private residential sector and the total extent of <a class=\"wp-caption\" title=\"Rent recovery\" href=\"http:\/\/legal4landlords.com\" target=\"_blank\">rent arrears<\/a> is as yet unknown.<\/p>\n<p>While landlords are struggling to make mortgage payments, little consideration is given by banks for landlords who are suffering through defaulting tenants.\u00a0 Other tenants themselves are falling behind with rent payments due to the countries financial situation and it\u2019s unemployment ramifications.<\/p>\n<p>As a consequence of rental arrears, landlords are now withdrawing from LHA tenants, which in turn is having a serious impact on the PRS, as more consumers are either by choice or for financial reasons renting rather than buying, leaving the sector in short demand for quality housing.\u00a0 More stringent tenant referencing is enforced as landlords try to protect themselves from defaulting tenants.\u00a0 As the housing shortage continues, a review and reform of the current LHA payment policy would be very much welcomed.<\/p>\n<p>By<br \/>\nMadalena Penny<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Residential rental arrears have had a massive negative impact on private landlords in the UK.\u00a0 The introduction of the policy by the then Labour government in April 2008 for LHA payments to go direct to the tenant, rather than the landlord has had a detrimental effect on the private residential sector. Pre-election, the Conservative Party [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[16,17,18],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>LHA Payment Policy Review? - Legal For Landlords<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dev.withcreative.co.uk\/lforl\/lha-payment-policy-review\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LHA Payment Policy Review? - Legal For Landlords\" \/>\n<meta property=\"og:description\" content=\"Residential rental arrears have had a massive negative impact on private landlords in the UK.\u00a0 The introduction of the policy by the then Labour government in April 2008 for LHA payments to go direct to the tenant, rather than the landlord has had a detrimental effect on the private residential sector. 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