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LHA should be paid direct to landlords

The British Property Federation (BPF) has written to the Work and Pensions Secretary, Ian Duncan Smith, asking for confirmation that a previous Conservative Party commitment on housing benefit payments is honoured by the coalition Government.

At present most local housing allowance (LHA) rent payments are paid directly to tenants who are then responsible for passing their rent on to landlords or to their letting agents.

In October 2009, Grant Shapps, who was at that time shadow Housing Minister said: “The current situation is bad for everyone, and I can see no reason why people on local housing allowance shouldn’t enjoy the freedom to have their housing benefit paid direct to their landlord.”

Ian Fletcher, director of policy at the BPF has now written to Iain Duncan Smith, seeking assurances that the measure will be contained in the forthcoming Welfare Reform Bill to ensure that landlords receive payments directly.

Fletcher, in his letter to Duncan Smith, said: “Last October your colleague, Grant Shapps MP, announced unequivocally that were you elected, the option of paying LHA direct to landlords would be restored.

“It was even more pleasing at the time that Andrew Selous MP, then Shadow Benefits spokesperson, also went out of his way to confirm the policy. I suspect no other policy secured so many votes amongst landlords as that statement alone.”

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