Local Housing Allowance and rent increase?

by Readers Question

9:49 AM, 15th June 2020
About 5 months ago

Local Housing Allowance and rent increase?

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Local Housing Allowance and rent increase?

Is there anything that prevents a landlord from charging the full Local Housing Allowance (LHA) to DSS claimants?

The LHA is the amount that the DSS will pay in rent for a benefit claimant in a particular area, dependant on the number of rooms that they are entitled to. This LHA used to be capped to the bottom third or so of average rents in that area. This cap has recently risen quite substantially.

For example, in my area a person on benefits who qualifies for a two bed property can claim up to £550. This has risen from £470 at the start of the year.

I have a tenant who currently pays £450 for such a property, funded entirely by the DSS. It has occurred to me that I am being foolish by not seeking the maximum LHA rent from her, since it is the DSS that will pay.

So can I simply serve her with a Form 4 (Section 13(2)) proposed new rent and expect the DSS to fund her to the tune of £550 in full, or will there be some resistance from the DSS? (Standard AST, long term tenant, rent not increased for the last 2 years)

In case anyone thinks I am being selfish, I am simply looking at ways to afford the increase in tax we have to pay following the Section 24 rules.

Jessie


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Comments

Mick Roberts

17:11 PM, 22nd June 2020
About 4 months ago

Reply to the comment left by WP at 22/06/2020 - 14:43
I thought that too,

Apparently if we have contractual periodic, we may not have to.
But people more qualified than me say so on their tenancies & I have heard of many will only do it with a Section 13, so is it better safe than sorry?
I don't do any new tenancies any more, let Letting Agent do them. We become too unstuck on every new rule/reg.

Stephen

20:27 PM, 22nd June 2020
About 4 months ago

Reply to the comment left by Darlington Landlord at 21/06/2020 - 15:53
Thank you very much for this I will check out
The flat has 4 rooms based in Gillingham Kent ME7

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