Concerned about lower and lower LHA rates ?
Because landlords are accepting the lower LHA rates brought in from April in order
to fill properties (50th to 30th Quartile), rents are appearing to be getting lower thus lowering the 30th quartile figure, thus creating a downward spiral.
Advice from 2 Councils states that landlords should be stating the correct (HIGHER) rent on the tenancy agreement (i.e.. the higher original figure) but with a line below this
amount stating that 'The above is the contracted rate, however we will
accept the lower figure of XXX in order to secure the tenancy and accept
direct payments whilst you are receiving LHA.'
When average LHA rents are collated, the higher figure will be used for the average and the downward spiral will be stopped.
Please make sure you use this option otherwise average LHA rates will simply shrink again next year.
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