An interesting report by the National Landlords Association highlights problems caused by the Local Housing Allowance, introduced a year ago, in which rent is paid to tenants instead of directly to private landlords. In a significant number of cases, the money's remaining with the tenant, leaving landlords struggling to pay mortgages and, in some instances, facing repossession. Research by the NLA shows that landlords are so unhappy with the new system, more than half are choosing to turn away LHA tenants, rather than run the risk of rental arrears and lengthy and costly actions to recover the money. More here.

Technorati Tags: property, real estate