Details of the Government’s new procedures for the payment of universal credit have been released and they confirm that a private landlord’s right to insist on direct rent payments if a tenant is in arrears will be scrapped.
The Residential Landlords Association, which represents around 15,000 private landlords, reacted with anger.
It said that when the new benefit system is introduced, payments will be made directly to tenants ‘and it will be up to them to pay their rents or not’.
Currently, Local Housing Allowance is paid directly to tenants who live in private rental accommodation. However, landlords can ask for it to be paid to them if the tenant falls into arrears or is declared vulnerable.
With universal credit – due to come into force next year and include benefits such as housing allowance – the new procedures will apply across the board to local authority tenants, housing association tenants and tenants in the private rented sector.
The RLA has raised a number of serious concerns about the proposals, saying that there is no right of redress for landlord if things go wrong, and that the whole concept creates risk for landlords. It has also attacked the proposals for lack of clarity, saying they have replaced ‘regulations’ with ‘guidance’.
It says that landlords will become increasingly unwilling to accept tenants on benefits.
Richard Jones, the RLA’s policy director, said: “We strongly believe that the Government’s whole approach is flawed, and although the objective of helping tenants to manage their financial affairs is in isolation a laudable one, the Government has wholly failed to appreciate the consequences of this.
“There will be a much higher level of arrears, an unwillingness of landlords to house benefit claimants (at a time when there is huge pressure on social housing), increased unwillingness by banks to lend for this kind of property (or increased interest rate to reflect the risk), much higher levels of evictions and much greater homelessness.”
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Comments
Rehab has already been completed turnkey rental, including new paint, flooring, kitchen cabinets, updated bathroom, and more rental properties .
Replace regulations with guidance. Advise tenants that it is 'up to them whether they pay their rent or not.' The. World. Has. Gone. Mad..
I agree with Ray.
Too much risk leaving it for tenants to pay.
Years ago I used to have virtual all tenants that were dss now I wont accept them unless there mum and dad pay the rent as guarantor and get the rent back of there child in fact I have only one tenant out of 9 who is in this position.
Recently a long term tenant and friend lost there job applied for housing benefit and coming up to the second monthly payment had still not received there benefit.
Its hard to tell someone its not my problem I want the 2 months rent you owe me when you know they are genuine, but I did.
Why would anyone take DSS when in this market a good property rented at the right price can be rented to a worker.
Of course there will be less for the most needy its not brain surgery are these people for real.