A landmark case on Local Housing Allowance has been hailed as “good news for landlords” by the National Landlords Association (NLA), after the Housing Benefit Tribunal upheld a decision on appeal that a tenant’s rental arrears begin immediately once the due date has been missed.

In his judgment (I Doncaster v Coventry City Council), Mr. C Jones, Chairman, Coventry Appeal Tribunal, categorically disagreed with the Department for Work and Pensions (DWP) view, and said, rent is in arrears once the contractual date for payment has passed irrespective of whether rent is due in advance or in arrears’.

Housing benefit regulations currently state that a landlord may only apply to their local authority for direct payment of rent once eight weeks or more of arrears have accrued. Certain local authorities refuse direct payment within this period citing DWP guidance which states that a person cannot be in rent arrears in respect of a period that has not yet been served’.

Richard Price, the NLA’s director of operations, said: “It is quite clear that the normal rules of renting should apply to Local Housing Allowance. According to most tenancy agreements, rent is payable in advance. Yet local authorities pay their Housing Benefit claimants in arrears. Therefore, when it comes to assessing the length of rent areas, there is a significant difference in approach between councils and landlords. The aim of the LHA was to put those tenants in receipt of Housing Benefit on a level-playing field to those in the open market. The fact that rent is paid in arrears puts them at a major disadvantage.

“This decision is good news for landlords and, although not binding, those who are experiencing similar problems should consider highlighting this decision to their local authority.”

The decision, which neither sets a legal precedent nor is binding on future decisions, in the meantime, may help landlords who find themselves in a similar position to Mr Doncaster when negotiating with local authorities over LHA rent arrears.