LHA system needs reform, says NLA

The current Local Housing Allowance (LHA) system has left landlords being owed an average of £4,400 in unpaid rent, according to one industry body.

Data released by the National Landlords Association (NLA) has revealed that LHA has generated national rent arrears of around £220 million since the current system was introduced.

The figures comes after the publication of a Work and Pensions Select Committee report, which strongly opposed government proposals to make direct payments conditional on energy-efficiency.

David Salusbury, NLA chairman, said: "This report highlights the reality that LHA is not working as well as the government would like to believe.

"If the sector is unconvinced by the government's proposals for reform and the committee's report is critical, then we think [the] government needs to look carefully at these findings, deal with rent arrears and try not to make matters worse."

According to the committee, local authorities also need to be more pro-active in identifying vulnerable tenants.

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