What do landlords think of the new LHA rates for 2024 – 2025?

The government has missed a huge opportunity to rightsize the LHA rates. They lag the said percentile quite markedly in London. The reason I suspect is that they use their existing database of rents which include a chunk of properties which have not had rent increases in years (indeed many of my own lets are on old rents simply because I don’t increase rents by default unless I have to). In practice the LHA rates are therefore not enough to rent almost ANY property in the postcodes at current market rates. Practically therefore this is unlikely to really definitively help those tenants access housing. That’s all separate from the points made in the note above re threats of rent caps etc (we have Mayor Khan in London who bleats on about this!) making benefit reliant tenants a real risk for any landlord,

Not only do most who get Housing Benefit/Allowance, or whatever it is called, also pay no Council Tax for the services they use.

As both a landlord (now with only a small portfolio as have had enough being abused by both tenants, government and Local Authorities), a tax payer and a council tax payer, there has to be an incentive for those who are able to work to get a job even if it’s only for the 18 hours that can be worked before work affects benefits.

The proposed LHA rate increases really do not reflect the true increase , I always fill in the VOA rent data when requested and I can only guess many Landlords don't so there is insufficient data so maybe the data is skewed to the downside. Of course I would hope they collect date from other sources. I would recommend everyone fills in the VOA data even if you don't rent to LHA tenants as you never know when the need may arise or you current tenants need support and the LHA is insufficient to cover the rent

After being frozen at the 30th percentile for 4.5 years, LHAs in my area of interest have risen by between 10% and 11%. Around the rate of inflation for just one of those years.

Fortunately for my tenants, I’ll still be able to keep rents at or below LHA but rents will rise by between 15% and 20% this year. I will no longer freeze my rents if LHA rates are frozen.

Reply to the comment left by Judith Wordsworth at 12/01/2024 - 12:51
Incorrect they pay a percentage of community charge .

Has a landlord of 25 years , l can honestly say l have tried to help my tenants with low rent , no where near lha rates for example £80. A week I a3 bedroom home in a good residential area l even live in the area myself ts5 , no longer can l do this due to government legislate comming in or already in and councilselective licensing , rents will now be going to full market value, this means iviction if the tenants can't or won't pay.

Reply to the comment left by paul fenton at 12/01/2024 - 15:36
I have never had data requests from me although, I have a good number of properties in the outer South London area

Reply to the comment left by Michael Booth at 13/01/2024 - 06:33
None of my tenants on full housing benefit paid a penny towards council tax.

Reply to the comment left by Judith Wordsworth at 13/01/2024 - 09:14
I notice your post is in the past tense. The rules have changed and benefit-reliant tenants now have to pay a proportion of council tax.

I no longer worry about the LHA rate, I charge the full economic rent for all my properties and let the council worry about those who cannot afford the price. I have 20 prospective tenants for every vacancy, 15 will fall at the first hurdle as they have zero savings, the five will be working individuals with a decent credit record so I can pick the best. One week of default results in a reminder and two weeks a Moneyclaim. All my rents are due on the first of the month so checking is very easy.