As MPs prepare to dot the I’s and cross the T’s of the Welfare Reform Bill, a leading landlord organisation is calling on the lawmakers to give tenants a fair choice.
The Residential Landlords Association (RLA) believes that many tenants on welfare benefits would prefer to have their rent paid directly to the landlord. They say this prevents them from having to make awkward decisions on how to eke out their money and means that their rent is always paid and therefore they are secure in their homes. The new universal credit proposed by the Welfare Reform Bill will deny them this choice as the architects of the bill feel tenants should have their own financial responsibility.
For landlords of course, getting paid directly from the government is a big boon. They know they don’t have to worry about rent arrears, which in turn means they don’t have to consider court costs when evicting their tenant due to money owed and don’t have to pay extra in landlord insurance to protect them from loss of earnings.
Alan Ward, the Chairman of the RLA, said “In opposition, the Conservatives supported the principle of tenant choice, believing it to be good for tenants seeking financial security and good for landlords, many of whom face unsustainable levels of rent arrears.
“As the Government pursues an agenda of consumer and user empowerment and choice, the RLA is calling on the same principles to be applied to the private rented sector, with greater freedoms for tenants to choose what best meets their individual needs.
“We call on MPs to use the Welfare Reform Bill to enshrine in legislation the freedom and right for tenants to choose, without forcing landlords to lower rents, making renting untenable for many.”