Lord Freud confirmed this week 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 also 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 would like 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.”
