Rent arrears have doubled in the past two years, with more than a third of landlords reporting that tenants have fallen behind with payments, according to a survey. A total of 34% of private landlords have experienced arrears problems over the past 12 months compared with 16% in the third quarter of 2008. Worst-hit are landlords in the commuter belt of London's suburbs. The survey also found high levels of arrears in the east Midlands. The good news for tenants is that rising arrears are making landlords think twice about raising rents. Some landlords blame the new Local Housing Allowance (LHA) scheme, which replaced housing benefit in April 2008, for the rise in arrears. Under the scheme payments are set at a standard local rate rather than being tied to an individual property, to discourage private landlords from overcharging. The cash is also paid direct to the tenant rather than the landlord. But landlords say that many tenants have not passed on the allowance. Read more of this story on The Guardian website by clicking on the logo below.
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