24 Jan

Landlords call for direct payment

Landlords call for direct payment

Landlords providing property to rent in the UK are calling for direct payments from local councils following rental arrears.

Unpaid rent across the UK in December came to £276 million, and 11.7 per cent of all UK rent was unpaid or late in the same month, according to the LSL December Buy to Let Index.

Now landlord groups are campaigning for Local Housing Allowance (LHA) claimants to have their rent paid directly from the council to their landlords.

Ian Fletcher, director of policy at the British Property Federation said: "Christmas should not be bankrolled by long suffering landlords by not passing on December's rent.

"The government persists with a policy that was designed to empower LHA claimants, but the truth remains that millions of pounds of taxpayers' money is being wasted and not finding its way to the landlord."

Until 2008, LHA claimants had their rent paid directly to landlords from the council.

Recent research from the Association of Residential Letting Agents (Arla) revealed that 40 per cent of members reported a rise in the number of tenants failing to pay rent in between April and October 2010.ADNFCR-1222-ID-800359876-ADNFCR

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