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News release

Government agrees to re-examine direct payments for failing Local Housing Allowance

16 December 2009

The National Landlords Association (NLA), the leading representative body for private-residential landlords in the UK, has welcomed today’s announcement that the Government will explore the reinstatement of tenants’ right to choose if their rent can be paid directly to their landlord.

‘Supporting people into work: the next stage of Housing Benefit reform’, published today by the Department for Work and Pensions (DWP), has acknowledged that problems exist: ‘some stakeholders have raised concerns about the operation of direct payment of Local Housing Allowance to customers and we know that, in some cases, safeguard procedures are not being operated well enough.’

The NLA, along with housing charities, has also welcomed the commitment to improve the guidance which is offered to local authorities so that the quality and consistency of decision-making can be improved in relation to Local Housing Allowance (LHA).

LHA was introduced for new tenancies in April 2008 when it replaced the old housing benefit system. Under the new rules, instead of rent being paid directly to private landlords to cover housing costs, it now goes straight to the tenants who are responsible for passing on the rent money to their landlord. In practice, many tenants are failing to make these payments and this is causing major problems. In the most serious cases, landlords are refusing to let to tenants who are in receipt of Housing Benefit because of rental arrears.

David Salusbury, Chairman, NLA, said:

“This consultation is by no means perfect but the issues which affect LHA can no longer be ignored. The NLA’s response on behalf of landlords across the UK will focus on ensuring that tenants are truly empowered by having the option of being allowed to have rent payments made directly to their landlord if they wish.

“We will also be campaigning for proper safeguards which ensure that councils up and down the country are able to deal quickly and effectively where tenancies start to get into difficulties. This means a more creative engagement between town halls and their local private-rented sector.”

The public consultation can be downloaded at: www.dwp.gov.uk/docs/hb-consultation.pdf

All media enquiries to:
Steven Hilton
Media Relations Manager, NLA
Email:
Tel: 020 7840 8906
Mob: 07508 031 084

Notes to Editors:
Representing landlords from all over the UK, the National Landlords Association (NLA) is the leading organisation for private-residential landlords. It campaigns for the legitimate interests of landlords by seeking to influence decision-makers at all levels of government and by making landlords’ collective voice heard in the media. The NLA helps landlords make a success of their lettings business by providing a wide range of information, advice and services. It seeks to raise standards in the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities.