Local housing allowance (LHA) has been controversial for landlords. The general belief is that the housing allowance can only be paid to the landlord if the tenant is either in arrears or the tenant is judged to be vulnerable. This is however not true, the legislation clearly states that the rent can be paid direct to the landlord if the tenant requests it. Landlords and letting agents in the know insist that the all housing allowance tenants request this request this. Below is the extract from the legistration for your information.
Circumstances in which payment may be made to a landlord
96. —(1) Subject to paragraph 8(4) of Schedule A1 (treatment of claims for housing benefit by refugees), where regulation 95 (circumstances in which payment is to be made to a landlord) does not apply but subject to paragraph (3) of this regulation, a payment of a rent allowance may nevertheless be made to a person’s landlord where—
(a) the person has requested or consented to such payment;
(b) payment to the landlord is in the interest of the claimant and his family;
(c) the person has ceased to reside in the dwelling in respect of which the allowance was payable and there are outstanding payments of rent but any payment under this sub-paragraph shall be limited to an amount equal to the amount of rent outstanding.