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Article > Government Uses Blackmail to Lower LHA Rents


Article kindly provided by Bobby Gill

As well as lower DSS/LHA rents the Government is now using blackmail to get landlords to reduce their rents even further if they want to be paid direct. LHA was the way forward for landlords to get guaranteed rents but it seems as if the Government is putting the brakes on that too by making sure you are guaranteed much LESS!

LHA rents will now be capped lower for new tenants. Landlord groups have always campaigned against the draconian rules of local councils, making it difficult for landlords to collect rent from their tenants, even if the tenant chooses to have it that way as well.

When DSS to LHA changes originally came in, I was at a Council Landlord meeting and everyone was against the changes, whilst the LHA 'speakers' were there only to TELL people what they will be getting from the Government. Feedback? Well you can say what you want but the Govt / Council isn't listening.

For example, if a tenant tells (lies to) the landlord saying they are waiting for the council to pay them, whilst spending the money that they have received. Should the landlord ask to speak to someone at the council, they are told they can't because of privacy issues. If the tenant fails to pay or leaves without paying, the council tells the landlord that it is between them and the tenant and they can't help. An easy way for the council to simply get out of having to deal with landlord requests, hence lowering their council costs, as time is money. Surprised? Don't expect the council to provide you any service, it works well for them.

Now, yet another failed scheme for Government and a poor fix to what is a simple problem - pay landlords directly the market rents for properties that they rent to LHA tenants, otherwise house them yourself!

At least some bright sparks in Government are getting paid well to come up with such absurd initiatives.

Even Dirty Rotten Scoundrels Steve Martin and Michael Caine had higher morals! Thank you Cameron and Clegg! Who's looking after the people if it's not the Government's job to treat everyone fairly?

Unfortunately it becomes more difficult for landlords to rent their properties privately at a fair price if the house is in a 'deprived' area. So not only have house values come down due to the recent credit crunch, they are about to get lower as those that look at yield will now pay less for properties that now rent for less.

What would happen if Landlords told the council that they would only pay business rates and council tax to them if they reduced their payments? Oh that's right, enFORCEment to make them pay! Now let's not go there...

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For those of you that know Bobby Gill, no introduction is necessary.

For those of you that don't - Bobby has been on the property scene for 10 years.
He has always had his ear to the ground and been ready to help those with less experience. If you're familiar with Parmdeep Vadesha's Tycoon Forum, he was a big contributor there. He has covered (and has personal experience) in renting, auctions, letting and estate agents, HMO's, student lets, Banking, Solicitors, Bank Receivers to name a few areas of property.

He likes to learn about and get immersed in various subjects and has more recently been involved in social media, wealth creation and personal development events.

He doesn't claim to be an expert or guru but does have a lot of knowledge in various areas. He's also not afraid to voice his opinion or speak the truth - so whether people agree with him or not, you can be sure he will say it as it is.

Bobby Gill will be writing for MPPT to provide you with an alternative viewpoint on what you hear at all the seminars.


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