Councils are allowing a growing number of tenants to fall into arrears through no fault of their own.

Delays in issuing local housing allowance (LHA) are causing the problem, according to tenant referencing company FCC Paragon.

The firm points out that at present councils encourage tenants to stay put until a bailiff or possession date comes through but this just strains relations between landlords and tenants.

With a cap on housing benefit due to come into effect from April 2011, there is a growing fear the situation will worsen as a result.

FCC Paragon's credit management manager Kerry-Anne Dowdell said landlords should contact councils as soon as their tenants fall into arrears to resolve the problem.

She thinks councils are not doing enough to assist private landlords and LHA tenants.

"The way local housing allowance is paid means many LHA tenants can find themselves two to four weeks in rent arrears," said Ms Dowdell. "Whilst landlords blame tenants, quite often tenants have submitted the relevant paperwork but it is the council who are holding up the process due to protocol.

"The problem we are encountering is that local councils encourage tenants to stay put until a bailiff or possession date comes through, which creates growing tension between tenant and landlord, and as a result we are having to intervene much more in order to resolve issues for our clients.

"Our advice to landlords is to contact your local council as soon as your tenant is in arrears so that the investigation process can get under way."