News from Manor Lettings
22 June 2010: Budget announcement and the changes to LHA
Further to the 22 June budget the immediate concern for many landlords will be the new limits placed on LHA (local housing allowance) and its effect on rental prices.
From April 2011 LHA rates will be set at the 30th percentile of rents in each area rather than the average. This means that rates will be set at a level where 70% of rents are higher than. However, over the long-term from April 2013, LHA rates will be based on CPI (consumer price index) and not local rents, which certainly means lower rates awarded. Nationally, the effect is more likely to be pronounced in the South (than North) where rents are lot higher. Locally, much depends on demand for and availability of local housing and reliance on private rented sector to accommodate any shortage.
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