Housing >> Housing Benefit

Local Housing Allowance

Frequently Asked Questions for Landlords

If the Broad Market Rental Area is changed and Local Housing Allowance changes will entitlement change?

No - not until the claim is due for its Annual Review.

Is there any evidence in the trial areas of Landlords increasing rent for sub-standard property?

There is no evidence of rent manipulation in the Brighton area to any great degree.

Can the Safeguard Policy be implemented prior to a Benefit claim being made?

This is not clear yet.  It is to be discussed by the five local authorities.

Who will receive payments of Local Housing Allowance whilst a decision is made on a Safeguard Policy Application?

This matter is to be discussed by the five local authorities.  There is no desire to put tenancies at risk, so a decision on any application would be a priority.  Any decision made to pay direct to the landlord would be reviewed regularly to ascertain if the Tenant was still deemed to be 'vulnerable'.

Where a new Tenant has an existing overpayment of Housing Benefit will recovery be from their Local Housing Allowance entitlement?

Yes - Overpayment recovery rules have not changed.

If rent is due in advance how will the 8 weeks arrears be calculated?

Arrears are from the date the last payment made up to the current date - they cannot be in advance.

If a Tenant is in arrears and later is determined to be vulnerable who is responsible for the arrears?

Any arrears remain the responsibility of the tenant.  It is vital that Landlords notify the Local Authority as soon as the Tenants rent account goes into arrears.  A vulnerability determination cannot be backdated, and Local Housing Allowance cannot be paid twice for the same period.  If Tenants Local Housing Allowance exceeds the rent charged to a maximum of £15 per week, the excess could be paid to a Landlord to clear any existing arrears.

Are there any data protection issues associated with the Safeguard Policy?  Will Landlords need a signed authorisation from the Tenant?

The Tenant has to apply under the Safeguard Policy and it may be helpful for Landlords or agents to assist with this matter if they are aware that the Tenant is having difficulties.

Can a decision under the Safeguard Policy be transferred from one authority to another if the Tenant moves?

Closer working between the five authorities should lead to a better service for both Landlords and Tenants.  This matter needs to be discussed fully before a decision is made.

Will a Safeguard Policy application be dealt with as priority and would it be acted upon if the tenant were only two weeks in arrears?

Each application will be determined on it's own merit and 'vulnerability' will not be determined by length of arrears only.  There is a possibility that payments will be suspended, as soon as an application is received, but there is no firm decision on this matter yet.

Will Landlords be advised of the reason for the implementing of the Safeguard Policy?

It is hoped that Landlords and agents will be instrumental in identifying 'vulnerable' Tenants at tenancy sign up.

Why are payments to Landlords always 4 weeks in arrears?

This procedure is laid down by the Government in legislation.

If payment is to the Tenant how will the Landlord the claim has been awarded and payments are being made?

Again, it is essential that Landlords advise the local authority as soon as a due rent is not received.  Landlords need to talk to their Tenants and encourage Tenants to keep them informed.

How long will claims take to process and will Landlords get copies of award letters?

Claims will be processed as soon as all necessary information and verification is received from the tenant.  No award letters will be issued to Landlords or agents.

Can a Tenant sign a disclosure authorisation?

Yes - if they so choose.

Can the signed consent include a request for award letters to be sent to the Landlord?

The five councils will consider this, but there are cost implications.

Are the Local Authorities confident that claims will be in payment prior to the second months rent being due?

As previously stated, all claims will be processed and put into payment as soon as all necessary evidence is received.  We are confident that based on the current Performance Indicators, that claims will be in payment prior to the second months rent being due in a majority of cases.

Has the introduction of Local Housing Allowance in the trial areas reduced the number of Private Landlords taking on Benefit Tenants?

The DWP advise that there is a 7% increase in the Housing Market.

Is there any data on whether or not the level of rent arrears has increased in the trial areas?

Studies indicate that there is no significant increase in the level of rent arrears.

Can notifications of rent arrears and requests for support be emailed to local authorities?

Yes.

Will local authorities direct Tenants to Citizens Advice Bureau for help with bank accounts?  How will the Landlord know that this has happened?

It is essential that Landlords advise local authorities as soon as the Tenant misses a rent payment.  If the Tenant is referred to the CAB it may be that the first Local Housing Allowance payment will be paid direct to the Landlord.  The CAB will give feedback on all referrals made.  If the Tenant fails to attend it may be that the Safeguard Policy would be appropriate.

If a Tenant is already receiving Housing Benefit under the current scheme, can they opt to go onto Local Housing Allowance?

No - their claim will only go onto Local Housing Allowance if they move or have a break in their Benefit claim of one week or more.

Can the Landlord or agent advise the Tenant to go to the Citizens Advice Bureau?

Yes - in Hastings we are looking to produce a leaflet that details basic bank accounts for all banks and building societies, including how to open and account and what verification is required by the bank.  Local authorities will be pro-active in doing their best to prevent homelessness.  Leaflets will be freely available and the details will also be available on the Internet.

Will age restrictions still apply under Local Housing Allowance?

Yes - the single room rate will still apply.

Will evidence of rent still be required?

Yes - for new tenancies the signed Tenancy Agreement, for reviews proof of rent liability will be required.

Will Local Housing Allowance roll out across the board?

The Government is looking at this and has indicated that they will carry out a review after two years.

Banks have indicated that they make impose a charge on all current accounts.  This may lead to Tenants refusing to have a bank account.

It is not clear what will happen with the Banks in the future - need to work with current situation.

Will more staff be taken on to deal with the transition period?

It is not envisaged that there will be an increase in resources as the roll out is gradual.  However, certain staff have been dedicated to the co-ordination and roll out of the scheme.  All five local authorities are working closely to produce forms, leaflets etc.

Can Tenants use Direct Debits as well as Standing Orders for paying their rent?

Yes.

When a Tenant completes a new Benefit Application, when should the Landlord contact the local authority?

Landlords should advise the local authority as soon as rent is due and the Tenant does not make payment.

Where a Tenant is on the current scheme will payments continue direct to Landlords?

Yes - Hastings currently pays 90% plus of its Housing Benefit payments direct to Landlords.  This will continue until such time as the Tenant is required to make a new claim following a move or a break in their claim.

What feedback has there been from National Federation of Residential Landlords members in Brighton?

There have been some problems, although a great many have now been sorted out.  In some cases there have been losses to Landlords.  It is down to the Landlord to check for 'vulnerable' Tenants and to be vigilant when vetting prospective tenants.

Can the Local Authority pursue arrears?

No - rent arrears are a matter between Landlord and Tenant and Local Housing Allowance will only be paid once for a period.

There has been talk of a dedicated Landlords' Enquiry Line in Hastings - has this happened?

There is a dedicated line for use by HALo Landlords in Hastings.

How will Tenants be advised of the changes due in April 2008?

The five local authorities are working hard and arranging forums and presentations for Landlords and agents before Christmas.  Leaflets, radio airtime and letters will be put together for Tenants and available in the run-up to April.

Can leaflets be available for agents and Landlords?

Yes - they will be freely available.

Can Tenants opt to be paid four weekly in arrears rather than two?

This matter is currently under discussion.  Local authorities are aware that two-weekly payments may lead to problems.

Can local authorities produce a pro-forma to report suspected non-payment of rent?

Part of the joint working process includes looking at what forms and leaflets will be required by Landlords and Tenants.

Can a Housing Benefit claim be made prior to the occupation of the property?

Yes - Legislation allows Tenants to submit a claim 13 weeks prior to occupation.

Will Tenants who use the Bond Board be treated as 'vulnerable'?

This is being looked into.

What is the start date of the new scheme?

Monday 7 April 2008.

Can the first four weeks rent be paid to the Landlord so that they are aware that Local Housing Allowance is in payment?

This option exists and is currently being explored.

How will the Landlord know if the Tenant is eligible for Housing Benefit?

It will be down to the Tenant to advise the Landlord in the first instance.  There are no easy answers - landlords need to be vigilant in their vetting processes and need to be aware that not all immigrants have recourse to public funds.

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