Government caps on housing benefit payments could force over three quarters of landlords out of the Local Housing Allowance (LHA) market, according to a survey conducted by the National Landlords Association (NLA).

The survey found 77% of landlords who have LHA tenants are either considering or already taking steps to reduce their involvement in the LHA market.

One quarter of respondents say they are already reducing the number of tenants they have on housing benefit payments, while half plan to do so in the future.

The changes see benefits based on the 30th percentile of local average market rents, rather than the previous 50th percentile. The caps limit the maximum benefit available based on the property size.

NLA research has found the LHA cuts will have a varied impact on families across the country, with some losing hundreds of pounds.

Government figures show nearly 1.3 million households currently claim LHA across the UK.

David Salusbury , NLA chairman, said: “The shortage of housing across the UK is putting even greater pressure on the private-rented sector. Capping housing benefit payments at this time will only lead to more people struggling to pay their rent.