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Advice for private landlords

Local Housing Allowance (LHA)
The changes to Local Housing Allowance (LHA,) which became effective from 1 April 2011, meant that the amount of Housing Benefit (HB) tenants get could have gone down. If your tenant moved into your property since April 2008, they are very likely to be affected by the changes. The main changes are:

• a reduction in the LHA rates so that about three in ten properties for rent in the area should be affordable to people on HB (previously five in ten);
• the maximum level is for a four-bedroomed house (previously 5-bedroomed);
• we have more discretion to pay HB directly to landlords - specifically when it would help a customer to secure a new tenancy or remain in their current home at a reduced rent.

When do the new rates take effect?
For new tenancies, the new LHA rates became effective from 1 April 2011. For existing tenants, benefit is reassessed from the anniversary date of the claim unless their circumstances change in the meantime. They may also be entitled to transitional support of up to 9 months before the new rates start.

The new way of working out LHA rates is based on  the 30th percentile compared with the previous method (14KB - 06 January 2011 - PDF Help) which was based on the 50th percentile.

The Valuation Office Agency (VOA)

Rent officers are required to collect lettings information continually and to consult the database as part of their work.  The database is critical to their ability to make reliable, representative and robust decisions.  If you are a landlord or a tenant you can provide the VOA with lettings information. Visit their website www.voa.gov.uk/rent_officer_functions/LettingsResearch and click on the link 'How Can You Help?'

Smartmove

Smartmove is a rent deposit scheme working with people in East Devon who are looking for accommodation in the the private rented sector and who live on a low wage or benefits. They only take referrals from, and work closely with, Exeter, East and Mid-Devon councils. Smartmove has very good working relations with HB departments and extensive knowledge of the benefits system. They provide suitable referrals with a deposit guarantee for 6 months, as this is often a barrier for their clients. Services to landlords include:

• facilitating direct payment to landlords for HB customers who are vulnerable or in arrears;
• mediation and support to improve working relationships between landlords and tenants;
• exploring opportunities for accessing Discretionary Housing Payments (DHPs).

Smartmove is keen to recruit landlords in our area and would be happy to explain how the scheme works.Their overall aim is to create long term, sustainable tenancies. Smartmove has been working closely with  the VOA to try and improve rent levels for LHA.

Contact Smartmove on 01392 430228 or visit the website www.communityhousingaid.org.uk

For more information, please ring our Revenues and Benefits Customer Services helpline on 01395 517446 and speak directly to one of our officers who will be pleased to help you.

Page last updated on 6 January 2012