It is feared that private sector landlords may begin to steer away from letting their properties to benefit claimants after new reforms on housing benefits were introduced.
Since April 7th, the local housing allowance (LHA) has replaced housing benefit, which used to be paid directly to the landlord. The new system, part of the Government’s welfare reforms, will give tenants in the private housing sector an allowance with which to find their own accommodation and pay rent themselves.
But putting the onus on tenants to pay their rent may impact on the number of landlords in the borough who are willing to take the potential risk of rent being late or not being paid at all, according to Michelle Stevenson, a landlord and tenant solicitor.
Michelle, an associate at Stephensons Solicitors LLP, said: “The previous system was very straight forward. The landlord was paid housing benefit direct and received their rent on time. Yet, this new scheme will give tenants more responsibility for their own money and meeting rent payments, but the fear is that some landlords may be unwilling to let their homes to claimants receiving this benefit.
“The Department for Work and Pensions piloted this new system for over two years in 18 areas of the country, with a lot of reported problems, however the scheme has still been implemented. There is now a very real threat that people who rely on benefits may start to find it harder to find homes in the private rented sector.”
Only those tenancies which started after April 7th will be affected by the reforms, with existing housing benefit claimants unaffected.
Michelle added: “There is some back-up for landlords though - if a tenant fails to pay for eight weeks or more, they can apply to have the rent paid directly to them.”
