Alliance formed over battle for tenant choice
An alliance of businesses and organisations in the housing sector has been brought together to call on the government to introduce the concept of tenant choice into its Welfare Reform Bill.
The alliance includes social and private rented sector landlords, property management services companies, tenants' organisations and those with an interest in housing finance such as the Money Advice Trust and the Council for Mortgage Lenders.
Under the Welfare Reform Bill, housing benefits will be no longer paid directly to the housing provider, such as a social or private rented sector landlord, but will be included as part of a 'Universal Credit'.
The recipient would then be responsible for making sure the appropriate amount is passed on to the provider.
However, the alliance believes that tenants should instead be given the choice to receive housing benefits themselves or to have them paid directly to the landlord.
A statement by the Residential Landlords Association, which has helped to coordinate the alliance, said: "Groups agree that given that the government is committed to the principles of choice and responsibility, those same principles should be extended to tenants on benefits giving them the opportunity to decide what would be best for their own circumstances.
"Furthermore, the support of the Council for Mortgage Lenders is a clear sign that tenant choice would better support the wide housing sector to access much needed finance to provide new housing."
It follows a recent Policis poll of 1,000 social housing tenants carried out on behalf of the National Housing Federation, which found that nine out of ten prefer the security of knowing that their housing benefit is being paid directly to their landlord.
According to the National Landlords Association, 35 per cent of private rented sector landlords let properties to recipients of Local Housing Allowance, equal to 420,000 landlords.
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