Where is best value to rent when getting the new LHA

dmg24

nettibetti wrote: »

too much temptation for "unsavories" to pocket the cash!:eek:

But they can do that now if they want to.

chickmug

dmg24 wrote: »

In theory, the LHA will be an average of rents within an area, so it should hold the same respective value in all areas. In practice it is unlikely to cover the full value of many private rents, but equally there will be some who have a surplus payment.

I have carried out some detailed looking into the pilot areas and find the amounts is well well short of the LHA.

dmg24

chickmug wrote: »

I have carried out some detailed looking into the pilot areas and find the amounts is well well short of the LHA.

Do you have access to all the rents in the respective areas?

agme28

chickmug wrote: »

I have carried out some detailed looking into the pilot areas and find the amounts is well well short of the LHA.

What do you mean? That LHA won't cover for as much as HB did? Now I am panicking!

dmg24

Try not to panic agme28, if you are currently claiming HB your claim will not change to LHA until you have a change in circumstances. There is a nice explanation of how it may affect you here.

I'm not sure what the circumstances are for chickmug's research, but unless they are a professional in this area, they will not have adequate data to make a fully informed decision on the impact of LHA.

agme28

I'm not claiming anything yet as my ex hasn't left yet, but I am anxious as to how much LHA I will get towards my rent. I am in a 3 bed but with 2 kids so I assume they will give me their average for a 2 bed.

Abi

dmg24

agme28 wrote: »

I'm not claiming anything yet as my ex hasn't left yet, but I am anxious as to how much LHA I will get towards my rent. I am in a 3 bed but with 2 kids so I assume they will give me their average for a 2 bed.

Abi

Depending on the age and sex of the children, you will receive the allowance for two or three beds (younger chidren are expected to share a room, so it would be two beds in those circumstances).

HB currently falls short of many private rents, but equally the eligible rent level for HB is more than some private rents.

There have been examples on MSE of people on the pilot LHA schemes receiving more than their actual rent, and this is where LHA is a positive in that the claimant keeps the excess.

My feeling is that, in the same way as with HB, you will get some rents that are higher than the 'average', and some that are lower. I doubt that people will be any worse off than if they were claiming HB (though no one can know this for sure until the new measures are in place) x

peter999

mitchaa wrote: »

What's to stop the recipient of LHA to keep the money for himself/herself and then moving back in with parents or a friend, BF/GF?

Surely paying direct to the claimant is a recipe for all sorts of benefit fraud?

How do they know that LHA will be spent on rental costs? If its paid direct in the bank, surely it could be spent on whatever the claimant liked?

The landlord won't get his rent & will evict the tenant.

peter999

mitchaa

There's a £15pw excess limit DMG24. You cant get £200pw LHA, spend £100pw of that on rent and keep the other £100. You can spend £185pw on rent and keep the remaining £15pw though.

If i was a landlord, there's no way i would be renting to anyone on benefits.

Most estate agents will require proof of income and a job reference so people on benefits will still be victimised and rightly so.

There are too many scallies that will refuse to pay the rent, keep the LHA and it will be the landlord that suffers. I wonder with the temptation of having that extra money in the bank, people will fail to pay their rents and spend it on fags/booze and drugs.

Poor landlords is all ill say.

jacnorm

Not everyone on benefits are bad tenants. We are on benefits and have been in our private renetd house for 3 years now and in that time we have installed a new kitchen, bathroom and new front door along with decorating through out and new floors. We have never missed a payment in rent and it`s very unfair to say everyone is the same. Infact one of my sons friends who has a very well paid job left his last flat and had not paid the rent to his landlord for six months.