The Government decision to set limits on the level of Local Housing Allowance (LHA) paid to tenants who rent homes in the private sector could have big implications on prices and future rent levels, says one specialist in the sector.

David Lawrenson, a landlord and property investor and author of Successful Property Letting, says: "Even landlords who don't let to benefit dependent tenants and tenants who don't get state aid to pay their rent will be affected by the capping of Local Housing Allowance (LHA) rates.

"The proposed reform of LHA rates has raised a lot of heat on discussion forums. Some think private landlords are the villains of the piece.
“Others blame the last government.

"Some say, usually those who stress they are taxpayers, that if they cannot afford to live in, say, Westminster themselves, why should they have to pay for those on benefits to live in such locations?

"Others point out that cheaper accommodation is available below the new capped LHA rates in most areas - and tenants should therefore move into it, like people have to move when they need a new job.

"The big concern is that the new caps could force vulnerable people to move from old homes in these expensive areas to other areas.

"One has grim visions of armies of grandmothers with disabilities and young mums being forcibly moved to cheaper boroughs further out.

"Meanwhile, tenants asked to move to cheaper areas rightly point out that it was not they who sold off the council housing stock so they should not have to suffer."

The site https://lha-direct.voa.gov.uk/Secure/LHASearchIntro.aspx shows the level of LHA payable to tenants, according to the number of bedrooms.