Benefit claimants may be rejected by landlords

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A number of landlords could stop providing housing for benefit claimants following the government's reform of housing benefit, it has been claimed.

Next month will see the replacement of the hosing benefit with the local housing allowance (LHW). Instead of being paid directly to the landlord as was previously the case, the new scheme gives tenants the allowance from which to find their own accommodation and pay landlords.

But, the National Federation of Residential Landlords (NFRL) has warned that evidence from government trials across the country suggests many landlords could protect themselves from the risk of not being paid rent by refusing to accommodate those who receive LHW.

Speaking to the Observer, letting agent Tom Reynolds, said: "At forums I have attended, landlords have complained about not being paid rent.

"In the past, they have been very accepting of housing benefit tenants because they would get regular payments, but now fewer may be prepared to accept them."

Last week, meanwhile, the National Landlords Association hit out at plans from the British Property Federation to introduce a professional rented sector in which home developments are run like office lets.

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