The Residential Landlords Association (RLA) is calling on Parliament to empower tenants and enable them to choose who their housing benefits are paid to.
Currently, housing benefit tenants in private rental accommodation automatically get Local Housing Allowance paid directly to them – and not to their landlords.
Before the introduction of LHA, housing benefit went to landlords. Landlords now complain that they often do not receive rent from their housing benefit tenants, who spend the money they receive supposedly for rent on other things.
As MPs begin consideration of the Government’s Welfare Reform Bill, the RLA is calling for tenants to be given the right to choose whether it is they or their landlord who receives their benefits.
The RLA says that evidence from their members shows that many tenants are falling into arrears and would prefer the security of knowing their rent has been paid.
In a statement the RLA said: “Whilst the Government argues that paying housing benefits direct to tenants promotes financial responsibility, research by Shelter has suggested that of those tenants who would like their benefits paid to their landlord, 95% are struggling to manage their own finances. Despite this, they are denied the ability to make a choice for themselves.
“Survey data for the RLA has found that of those landlords who would not re-let their properties to those on benefits, 45% cited a lack of any guarantee of payment as the main reason.”
RLA chairman Alan Ward added that many landlords with tenants on housing benefit face unsustainable levels of rent arrears.
He said: “We call on MPs to use the Welfare Reform Bill to enshrine in legislation the freedom and right for tenants to choose, without forcing landlords to lower rents, making renting untenable for many.”
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Comments
The problem with paying direct to the landlord, is when the tenant loses his/her entitlement to the allowance but doesn't inform the local authority.
For instance they get a job, but don't tell. Then eventually the local authority finds out. As the law stands at present, the local authority is entitled to demand the 'over payment' back from whoever received it.
So if it was paid to the landlord, it is the landlord who must repay it. Of course the landlord can then insist the tenant repay them. Good luck with that!