News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the April / May 04 issue RPI news archive

Local Housing Allowance to include landlord safeguards - April / May 2004

Although it is too early to provide any firm analysis, there are already signs that the new system of housing benefit being piloted in nine pathfinder areas is allowing tenants to exercise choice by negotiating rent, and moving to accommodation that is more appropriate to their needs, Secretary of State for Work and Pensions Andrew Smith told the House of Commons.

The Minister also claimed that landlords in the pathfinder areas are benefiting by having claims processed more quickly.

Smith was updating Parliament on trials of the Local Housing Allowance ­ a set amount allowance for housing costs based on household composition and location ­ which it is proposed will replace housing benefit.

'We are testing this new scheme, for tenants renting accommodation in the private sector, in nine pathfinder local authorities, representing different types of housing markets, before rolling it out nationally. When we launched the policy I promised to keep colleagues updated on progress and I know there has been interest from many non Members in these groundbreaking reforms. I am pleased to report as of 9 February all pathfinders are up and running and implementation has gone smoothly', said Smith in a ministerial statement. 'Already some 19,000 tenants are enjoying the benefits of Local Housing Allowance in the pathfinder areas, and a further 25,000 will transfer over the coming months'.

The Government recognised that some tenants, not used to exercising the freedom of choice allowed by the new system, 'will need help and support', said Smith. 'We also recognise that it is important to provide safeguards for landlords against tenants who default on their rent. We are providing a range of safeguards for landlords, and support and advice for tenants.
 

other artilces from the April / May 2004 issue

• Standard response
• Agents and lenders are in bullish mood
• Landlords advised to check small print
• Landlord and agent pay for safety lapses
• Private rented sector 'stable'
• Manchester students look at becoming landlords
• Landlords leaving London market
• Local Housing Allowance to include landlord safeguards
• Landlord training
• Council threatens evictions over own delays
• In brief
• OFT calls for greater controls on estate agents
• Chancellor freezes stamp duty rates
• Pension possibilities