The National Landlords Association (NLA) has called for the Government to give tenants choice in how housing benefits are paid to private landlords.
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Yesterday, Lord Freud confirmed that the new Universal Credit system would allow housing benefit to be paid direct to the tenant, but would revert to the housing provider should a tenant begin to fall into arrears.
Lord Freud stated that he would “build safeguards into the system to minimise the impact on social landlords’ incomes and reassure lenders”.
David Salusbury, NLA Chairman, commented:
“We call upon the Government to remember that private landlords are vulnerable to the effects of rent arrears.
“Thirty-five per cent of landlords* let properties to recipients of Local Housing Allowance (LHA), representing an estimated 420,000 landlords, so it is important that they are considered within this proposal.
“It is clear that tenants favour choice; nine out of ten social housing tenants** want the security of knowing their housing benefit is paid directly to their landlord.
“It is vital that tenants are given this freedom of choice in order to encourage the adequate supply of affordable accommodation.”
*662 NLA members were surveyed. The survey was conducted by the NLA and BDRC Continental, the UK’s largest independent research agency, to evaluate landlord’s concerns during the second quarter of 2011.
** Research supported by the National Housing Federation and carried out by Policis surveying 1,000 social housing tenants nationally.
